Currencies World 11-07-2014

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MCX-SX USDINR Jul 2014
Rupee ended largely steady as strong dollar sales on hopes of a fiscally prudent budget were offset as shares retreated from record highs to fall for a second consecutive session. Hopes about the budget were reinforced after the government issued an economic survey report calling the fiscal situation worse than it appears and hinted at tough measures to shore up public finances and reduce inflation. Dollar sales from foreign banks, which traders attributed in part to expectations of a positive budget, offset a second consecutive losing session in shares amid concerns markets may have risen too strongly after hitting record highs. India’s economy is likely to grow in the range of 5.4 to 5.9 percent in 2014-15 overcoming the sub-5 percent growth of gross domestic product experienced over the last two years, the Economic Survey 2013-14, presented by Finance Minister Arun Jaitley showed. Inflation too declined during this period, but continued to remain above the comfort zone mainly due to the elevated level of food inflation, the report said. Both wholesale and consumer price inflation are forecast to go downward. The survey pointed out that the downside risks to the economy arise from a poor monsoon, the external environment and the poor investment climate. Technically market is under fresh selling as market has witnessed gain in open interest by 0.09% to settled at 554942 while prices down -0.035 rupee, now USDINR is getting support at 59.8275 and below same could see a test of 59.735 level, And resistance is now likely to be seen at 60.0925, a move above could see prices testing 60.265.

USDINR Intraday Highlights

USDINR trading range for the day is 59.77-60.3.
Rupee ended largely steady as strong dollar sales on hopes of a fiscally prudent budget were offset as shares retreated from record highs.
Hopes about budget were reinforced after government issued an economic survey report calling the fiscal situation worse than it appears
India’s economy is likely to grow in the range of 5.4 to 5.9 percent in 2014-15 overcoming the sub-5 percent growth of gross domestic product.

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