The Rupee failed to hold its early gains and ended lower by 5 paise to close at an over one-week low of 68.18 as the dollar gathered strength ahead of the US Presidential inauguration.
The dollar tends to fare better. Analysis going back to the early 1970s when the currency was taken off the gold standard shows it has risen an average 2.2 percent in the first month of a 1ST time president. Trump takes office as the 45th president of the United States with investor apprehension over an incoming president has rarely been higher.
• United Kingdom Retail Sales ex-Fuel (MoM) registered at -2%, below expectations (-0.3%) in December.
• Greece Current Account (YoY) fell from previous €-0.198B to €-1.191B in November.
• Germany’s Schaeuble: Brexit unlikely to have negative economic impact on EZ in 2017.
USDINR opened on a negative note but gained positive momentum in the later half and closed on a flat note.
It is expected to move towards the resistance of 68.5100 till it maintains above 68.0000 mark. On lower side, 67.9500 will continue to act as important support.
EURINR was unable to sustain higher since the beginning of the session and closed in red territory.
The currency pair is unable to surpass the mark of 73.0000 on higher side and reversals from this point may find 72.3000 as immediate support.
GBPINR fell sharply from the higher levels as mentioned in the previous report and closed on weak note.
Now, if the pair sustains below 83.7000 then it may further move towards deeper supports of 83.5000-83.2000. On higher side, 84.0000-84.3000 is seen as resistance range.
JPYINR extended the bears of the previous session and closed on weak note.
Closing below 59.3000 is a weak sign and sustaining below it can drag it towards 59.0000 mark whereas 59.5000-59.7000 may act as resistance range.
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