Rupee weakens against the greenback on Wednesday over weak signals from other Asian markets after the Atlanta Fed President Dennis Lockhart in his speech indicated more probability on June for rate hike.
China cut their currency Yuan approx 0.60% weaker against the American currency which is the biggest downward move since devaluation of currency in August last year. On the other hand, Japanese Yen faced a retracement after the currency hit 18 month high in the previous session. Next major economic indicator for UK is that its Construction output growth eases to weakest for almost three years.
- Rupee weakens 22 paise to 66.63 against US dollar on Fed comments.
- ASIA FX-Slowing growth, inflation worries hurt Asia FX; ringgit leads.
- Yen slips from 18-month high vs dollar, pauses after rally.
- German Service sector activity growth slows slightly in April.
- Eurozone remains in low gear at start of second quarter.
USDINR opened gap up and sustained at higher levels for the whole session making the pair to close in green.
As per our last report, there was mention of lower lows since last few sessions and hence it showed a short pull back on higher side. Now, the crucial point seen is 67.0000 and any closing below 66.7000 can again drag the index down.
EURINR lost its shine after the tremendous rally so shown in last few sessions and finally settled on lower note losing approx 0.50%.
On daily charts, it needs to sustain above 77.0000 to again gain strength 76.4000 is seen as major support from current levels.
GBPINR opened gap down and gradually dragged on lower levels for the whole trading session and closed in red.
On daily charts, the channel pattern so mentioned in previous reports is seen as crucial point as strong reversals took place from such levels and 96.6000is now seen as major support while closing above 97.5000 can again mark strength.
JPYINR opened gap down but managed to inch above from bottom levels during the session.
The counter can be said in strong zone till it sustains above 62.0000 mark. On intraday charts, bulls can again take it forward if it sustains above 62.7000 while 62.3000 is seen as immediate support.
EURINR although closed down but managed to sustain above the crucial support on daily charts and so buying can be seen in the counter if it holds above the level of 76.9500.
BUY ABOVE 76.9500 TARGETS 77.0700/77.2000 SL 76.7900.
JPYINR is seen on strong zone till it sustains above 62.0000 and so buying momentum can again be seen above the level mentioned and may reach towards the resistance zone.
BUY ABOVE 62.6600 TARGET 62.9100 SL 62.2000.
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