The Rupee strengthened by 18 paise to 66.84 against the dollar in early trade at the Interbank Foreign Exchange on selling of the US currency by exporters and banks amid foreign fund inflows. A fall in dollar against major world currencies after the US Federal Reserve decided against lifting interest rates also helped the rupee gain strength.
The dollar fell to its lowest in a week against the euro but recovered some ground against the yen on Thursday, after a U.S. Federal Reserve meeting that balanced hints of a rise in interest rates this year with cuts in the longer term outlook.
- Fed Leaves Rates Unchanged, Signals 2016 Hike Still Likely.
- Asia yield-hunting back on dovish Fed; won, rupiah near 2-wk peaks.
- Dollar slips to 4-week low vs yen after Fed, BOJ policy meetings.
- NZ Official Cash Rate unchanged at 2.0 percent.
USDINR lost its shine after a long consolidation on daily charts and closed below the key support.
It breached the important level of 67.0000 and closing below it indicates selling pressure may continue towards the next support of 66.5000.
EURINR is not able to break the range which it is following since last few sessions.
It needs to surpass the resistance of 75.2000 for up move to continue while 74.7500 is still seen as crucial support for the currency pair.
GBPINR showed some up move in the first half of the session but could not sustain on highs and dragged thereby.
Now, the key psychological support ahead is 87.0000 breaching which can further drag the counter while 87.7000 may now act as major resistance.
JPYINR opened gap up and then gradually dropped down but managed to close on a green note.
Strength can be seen till it sustains above 66.3000 and the counter has the stamina to reach towards the next resistance of 67.1000. On lower side, 66.0000 is seen as good support.
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