The dollar dipped on Monday, pulling away from 14-year highs hit last week on expectations of a faster pace of US monetary tightening, as investors booked profits and lightened hefty bets on the currency into the end of the year.
It had surged after a policy statement from the Fed Res on Wednesday, threatening parity with the euro as markets moved to price in the chance that rates will be hiked 3 times in 2017. U. S. Treasury yields were lower but the dollar remains underpinned by bets of more U.S. rate hikes.
- Dollar retreats from 14-year highs, yen firms on safe-haven buying.
- German Ifo business morale hits highest level since Feb. 2014.
- China’s yuan firms after surprisingly strong midpoint.
- European Monetary Union Labour cost increased to 1.5% in 3Q from previous 1%.
USDINR traded sideways but gained momentum thereafter to close the session in green territory.It has been hovering around the resistance of 68.0000 which it has been facing since last three sessions and closing above can result in positive momentum.
EURINR was unable to show any movement and traded in weak zone.On daily chart, if it surpasses the near support of 70.8000 then it may further fall towards deeper support while correction on higher side can be seen if it sustain above 71.1.
GBPINR opened above the previous close but could not sustain there and slipped during the session.On lower side, 84.1800 is seen as strong support holding below which can increase selling pressure whereas 84.8500 may act as immediate resistance for the counter.
JPYINR corrected on higher side after continuous weak trend as seen on daily chart.The currency pair strongly resisted around 58.0000 mar and may move towards 58.6000 if it sustains on higher side whereas 57.3000 will continue to act as good support.
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