Currencies World 08-07-2014

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MCX-SX USDINR Jul 2014
Rupee was little changed as caution set in ahead of Prime Minister Narendra Modi’s maiden budget, although the currency posted its biggest weekly gain in 1-1/2 months on strong foreign inflows. The Reserve Bank of India was also spotted buying dollars, continuing its pattern of intervention to prevent the rupee from gaining sharply as strong foreign flows helped send the NSE index to its record high for a third straight day. The rupee rose 0.6 percent for the week, posting its strongest gain since the week of May 16 that saw the election of Modi as prime minister, although the unit has ceded ground since hitting a three-week intraday high of 59.52 on Thursday. The budget due to be presented on July 10 will be a key test of investors’ faith in Modi and his Finance Minister Arun Jaitley, with markets expecting the government to deliver a fiscally prudent budget. Foreign institutional investors bought shares worth $886.24 million, including in primary markets, and debt worth $322.52 million on Thursday, regulatory data showed, taking total inflows in the year so far to $21.46 billion, across both the segments. In the offshore non-deliverable forwards, the one-month contract was at 59.93, while the three-month was at 60.50. Technically market is under fresh selling as market has witnessed gain in open interest by 1.59% to settled at 545290 while prices down -0.04 rupee, now USDINR is getting support at 59.9175 and below same could see a test of 59.8225 level,And resistance is now likely to be seen at 60.095, a move above could see prices testing 60.1775.
USDINR Intraday Highlights
• USDINR trading range for the day is 59.83-60.18.
• Rupee was little changed although the currency posted its biggest weekly gain in 1-1/2 months on strong foreign inflows.
• The Reserve Bank of India was also spotted buying dollars, continuing its pattern of intervention to prevent rupee from gaining sharply.
• In the offshore non-deliverable forwards, the one-month contract was at 59.93, while the three-month was at 60.50.
• SELL USDINR @ 60.15 SL 60.34 TGT 59.96-59.72

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