India’s central bank kept its policy rate on hold for a second meeting in a row, opting to wait for more clarity on the trend for inflation and on how a radical crackdown on “black money” would impact economic growth. RBI monetary policy committee on Wednesday voted 6-0 to keep the repo rate 6.25%.
The committee decided to change the stance from accommodative to neutral while keeping the policy rate on hold to assess how the transitory effects of demonetization on inflation and the output gap play out.
• Asian currencies take breather, languish below recent peaks.
• Euro licks its wounds after skidding on political woes.
• Denmark Trade Balance climbed from previous 5.7B to 6.9B in December.
• Spain Industrial Output Cal Adjusted (YoY) came in at 1.9% below forecasts (2.9%) in December.
USDINR washed off all the gains of the previous session and dragged to close the session in red.If it continues to drag then it may fall towards the crucial psychological support of 67.0000 whereas on higher side, 67.6000 is seen as strict resistance.
EURINR continued its bear rally so seen in last few sessions and closed with loss of approx 0.50%.It surpassed the psychological crucial level of 72.0000 and closing below it indicates weakness. Now, immediate support so seen is 71.5000 while resistance at 72.0000.
GBPINR opened gap up and sustained above the previous close for the entire session.If the currency pair slips below 84.0000 then it may further move southwards whereas 84.5000 is observed as important resistance for it.
JPYINR moved in the same range as of previous sessions and close on a flat to negative note.It may drag towards the key support of 59.4000 if it sustains below the mark of 60.0000 while on higher side, 60.3000-60.5000 is seen as resistance range.
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