The rupee on Wednesday opened 6 paise down at 64.49 against the US dollar ahead of the outcome of the RBI’s bi-monthly monetary policy review meet later in the day.
The European Central Bank makes a policy decision and former FBI director James Comey gives testimony to the U.S. Senate. dollar has lost more than 1 percent versus the safe-haven Japanese currency so far this week, pressured by a sharp drop in U.S. Treasury yields to seven-month lows amid a risk-averse mood, and as weak U.S. data has curtailed expectations for interest rate hikes from the Federal Reserve.
• South Africa Business Confidence Index fell from previous 94.9 to 93.2 in May.
• RBI leaves key rate unchanged at 6.25%.
• Singapore Foreign Reserves (MoM): 264.6B (May) vs 260.7B.
• Italy Retail Sales n.s.a (YoY) rose from previous -0.4% to 1.2% in April.
USDINR G=gradually dragged throughout the session and closed on a weak note.
The currency pair is facing strong support since last three sessions around 64.4500 and holding below it can further drag it lower while 64.7000 is seen as resistance.
EURINR faced major sell offs from resistance levels and fell to close in red territory.
It may further slip towards the nearest support range of 72.1500-72.0000. On higher side, 73.0000 may continue to act as strict resistance.
GBPINR hovered in the same range as of previous few sessions and closed on a flat to negative note.
It needs to move on either side to surpass the range in which it is moving since last few sessions where 83.6000 is seen as resistance and 83.0000 as strong support.
JPYINR carried the bulls in the early part of the session but faced stiff resistance and fell to close in red.
The currency pair is unable to hold above 59.0000 mark which acted as key resistance and so correction may take it on lower levels of 58.8000-58.6000.
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