Rupee depreciated against the greenback despite US Dollar Index recorded its first decline in seven sessions.
Most of the emerging Asian currencies turned bearish in last two weeks largely over cues about slowing global growth. The won has lost 2% against the U.S. dollar so far this month. An awaited event was BOE monetary policy. The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target and in a way that helps to sustain growth and employment. At its meeting ending on 11 May 2016 the MPC voted unanimously to maintain Bank Rate at 0.5%.
- Asia FX sentiment turns bearish on global growth fears.
- Yen weaker on BOJ easing talk, BOE’s “Super Thursday” remained in focus.
- German Wholesale prices in April 2016: –2.7% on April 2015.
- French Consumer prices increased by 0.1% in April 2016; year-on-year, they were down
USDINR moved in very tight range as mainly consolidated in range of 66.7000-66.8500.
Previous session marked the reversals from 67.0000 mark and sell offs can be seen till it sustains below this key resistance. Near term support is seen around 66.6000.
EURINR also showed less movements as moved in tight range as of previous session and closed flat.
On daily charts, it has been consolidating around specific range and 76.3500 is seen as immediate resistance while 75.9000 is still acting as strong support.
GBPINR traded on lower levels for most part of the session but climbed in the last hour after the awaited data of BOE monetary Policy.
On daily charts, it is finding constant support on lower levels and may hike above 96.9500 while 96.3000 is seen as support.
JPYINR could not manage to sustain on higher sides rather dropped with greater margin and reached towards deeper supports and closed losing approx 0.40%.
On daily charts, it tends to fall towards trend line acting as strong support i.e. around 60.7000 while intraday resistance is seen near 61.5000.
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