Highlights

  • Indian Rupee depreciated around 1.2 percent in yesterday’s trade.
  • German Factory Orders rose by 3.3 percent in month of September.
  • UK’s Manufacturing Production gained by 1.2 percent in October.

Asian markets are trading on a lower note today ahead of the European Central Bank (ECB) policy meeting and Gross Domestic Product (GDP) data from US.

US Dollar Index

The US Dollar Index (DX) declined around 0.3 percent yesterday on the back of rise in risk appetite in market sentiments which led to decline indemand for low yielding currency. Further, expectations of decline in US GDP for the third quarter of the current year have eased concerns of QE tapering by the Federal Reserve which exerted downside pressure on the currency. Additionally, estimates that European Central Bank will keep the key rates unchanged acted as a negative factor. The DX touched an intra-day low of 80.46 and closed at 80.56 on Wednesday.

Dollar/INR

The Indian Rupee depreciated around 1.2 percent in yesterday’s trading session. The currency depreciated on the back of dollar demand from state run banks on behalf of oil importers. Additionally, expectations of shutdown of swap window created by the Reserve Bank of India (RBI) for OMC’s exerted downside pressure on the currency. Further, weak domestic market sentiments acted as a negative factor. The Indian Rupee touched an intra-day low of 62.53 and closed at 62.39 on Wednesday.

For the month of November 2013, FII inflows totaled at Rs.2189.50 crores ($356.07 million) as on 6th November 2013. Year to date basis, net capital inflows stood at Rs.91123.20 crores ($16555.00 million) till 6th November 2013.

Outlook

From the intra-day perspective, we expect Indian Rupee to depreciate on the back of dollar demand from importers. Further, estimates that RBI will shut down its swap window which is opened especially for OMC’s will exert downside pressure on the currency. Additionally, weak market sentiments coupled with stronger DX will act as a negative factor for the Indian Rupee.

Technical Outlook valid for November 7, 2013

Trend

Support

Resistance

US Dollar/INRNov’13(NSE/MCX-SX)

Up

62.40/62.20

62.90/63.20

Read More Info

Forex Market Technical Report 07 November

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