The Rupee has gained strength significantly to the dollar as bullish overseas investors are seen triggering fund inflows into Indian assets after BJP’s resounding victory in state elections revived hopes for fast-paced economic reforms. The local unit hit nearly 11-month high rising 66.18 against the greenback, the level last seen on April 21, 2016.
The dollar climbed on Tuesday ahead of an expected interest rate rise by the U.S. Federal Reserve, as political risks from Dutch and French elections to Britain’s exit from the EU weighed on European currencies.
- United Kingdom 10-y Bond Auction rose from previous 1.18% to 1.31%.
- Spain 3-Month Letras Auction declined to -0.415% from previous -0.402%.
- European Monetary Union ZEW Survey – Economic Sentiment came in at 25.6, above expectations (19.3) in March.
USDINR opened below the important support levels as seen on the daily chart and closed with the loss of more than 1%.
Selling pressure intensified in the last hour of the session and it surpasses the mark of 66.0000. It may further fall down if it sustains below 65.9000.
EURINR also dragged and made new 52 week lows closing the session on deeper support levels.
Now, the psychological mark so seen is of 70.0000 below which the currency pair may drop down whereas 70.5000 is seen as immediate resistance.
GBPINR continued the bearish move as it sustained below the key supports on the daily chart.
The mark of 80.0000 is seen ahead for the counter holding below which can drag it towards the next mark of 79.0000. Sell on highs are expected to continue.
JPYINR continued the weak trend for the fourth consecutive session and closed near the support.
On the daily chart, if the pair holds below 57.3300 then major sell-offs could take it towards deeper supports of 57.0000 whereas 57.8000-58.0000 is seen as resistance range.
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