Market Outlook
Even after the RBI kept its key policy rate unchanged, the Indian Rupee crashed below the 74-level against the US dollar. Basically, this was mainly attributed to fresh selling by exporters as the government reduced oil prices. Apart from this, now market participants remained concerned over sustained foreign capital outflows and fears of widening current account deficit in the wake of soaring crude oil prices. On the flip side, dollar inched up and remained near one-and-a-half-month highs ahead of the much anticipated U.S. job data due later in the day.

Fundamental News

  • India Reverse Repo Rate below forecasts 6.5%: Actual 6.25%.
  • Switzerland Foreign Currency Reserves rose from previous 731B to 740B in August.
  • France Trade Balance EUR came in at €-5.6B, below expectations €-4.5B in August.

USDINR showed positive movements closed below its psychological level.
Currency pair unable to sustain on higher levels showed correction in last trading hour more negative movements were seen if open below 74.0000.

EURINR showed correction and closed around its resistance level.
Now, 85.5000 is seen as immediate resistance zone for the currency, if able to give breakout then 85.8000 is act as next resistance.

GBPINR gave breakout of its resistance level and closed above it.
Sustaining above its resistance level give strength to particular currency pair and continue bullish movements towards 97.0000 mark.

JPYINR after positive movements showed correction and closed around its resistance.
Closing above psychological level of 65.0000 suggesting more positive movements in it and may find next resistance around 65.5000.

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