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Market Outlook

The Rupee pared some initial losses, but was still down 18 paise at 66.86 against the American currency in late morning trade on bouts of dollar demand from banks and importers amid weak domestic market. Overseas, the dollar began the week on the back foot as a bout of risk aversion underpinned the yen.

The safe-haven yen was the winner on Monday as investors sold stocks and riskier assets including commodities, but the dollar outperformed higher-yielding currencies on fresh talk of an interest rate hike by the Federal Reserve in the near term.

Fundamental News

  • Stocks sell off boosts yen, dollar supported by Fed rate hike talk.
  • Yen demand returns as markets feel the equity jitters.
  • Japan Machinery Orders (MoM) came in at 4.9%, above expectations (-3.5%) in July.
  • Yuan Overnight HIBOR spikes to highest Since February.

USDINR

USDINR hiked for another consecutive session and closed above the psychological resistance level.

It closed above 67.0000 mark and now 67.1500 is seen as immediate resistance sustaining above which can lead it to northwards while 66.9000 may act as good support.

usd

EURINR

EURINR rallied for last few sessions but corrected in the previous session and closed in red zone.

On daily charts, a reversal candlestick pattern is seen which suggests that selling pressure can be seen if the counter holds below 75.2000.

eur

GBPINR

GBPINR again has been moving in the same trading range and closed on a flat to negative note.

It needs to give a breakout on either side to specify the trend further. It is facing stiff resistance around 89.1000 while 88.7500 is seen as strong support.

gbp

JPYINR

JPYINR sustained higher after it jumped from the lower band of triangle pattern.

On daily charts, if it maintains above 65.8000 then it may move towards the resistance range of 66.0000-66.2000 while 65.1000 may now act as major support.

jpy

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