Reversing its three-day climb, the Rupee fell 16 paise to 66.62 against the US dollar at the Interbank Foreign Exchange today due to higher demand for the American currency from importers and banks. Strengthening dollar against other currencies overseas amid mounting expectations of higher borrowing costs in the US weighed on the rupee, but a higher opening in the domestic equities cushioned the impact.
Britain’s pound dipped below $1.27 for the first time since June 1985 on Wednesday, with fears of a ‘hard’ Brexit also pushing the currency to a five-year trough against a broadly stronger euro.
- Sterling falls below $1.27 for first time since 1985.
- Euro makes broad gains, rises to five-year high against sterling.
- Dollar hovers near 2-month high, euro extends bounce.
- Eurozone PMI at 20-month low as growth slows in Germany, Italy and Spain.
- Volume of retail trade down by 0.1% in euro area and EU28.
USDINR was unable to sustain at higher levels after a slight gap up opening and finally settled on a flat note.
It is expected to face continuous resistance around 67.0000 level while 66.6000 is near support breaching which can further drag the counter lower.
EURINR jumped after the weak closing in the last session and also closed higher.
It again took resistance of 100 day EMA as shown in the daily chart above. Sustaining above 75.1000 will assure bulls otherwise 74.6500 will continue to act as key support.
GBPINR extended the bears as seen on daily charts and closed again in red territory.
Consecutive four day fall found support around 85.0000 and closed above it. If it corrects in coming sessions then 85.5000 may act as immediate resistance.
JPYINR continued the downfall so possessed by the counter in last few sessions and closed on a weak note.
If the bearishness continues in the pair then it may drop towards the 100 day EMA of 64.4000 while on higher side, it needs a closing above 64.9500 to gain strength.
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