The Rupee opened nearly 13 paise higher at 68.08 against the dollar on Tuesday amid selling of dollars by banks and exporters. The domestic equity market opened in the green following mixed global cues.
Importers and overseas currency borrowers are usually reluctant to hedge their US dollar exposure as they try to benefit from exchange rate movement to their advantage but with the US dollar strengthening and a collapse in the forward premium which makes hedging cheaper, there is a surge in covering USD positions.
• Dollar dips as investors eye Trump, sterling slides again.
• Yuan steadies as China PPI grows at fastest pace in 5 years.
• Japan Consumer Confidence Highest Since September 2013.
• Sweden Industrial Production (YoY) up to 0.1% in November from previous -0.5%.
• Aussie rebounds as tame China consumer prices support.
USDINR opened gap down but soon gained momentum and closed in the same range as of previous session.
It has stuck into a particular range where 68.5000 is seen as stiff resistance and 68.0000 will continue to act as important support for it.
EURINR opened with a bang and was able to sustain on higher side for the entire session.
The currency pair surpassed the important level of 72.3000 and sustained higher indicating that it may move towards the next resistance 72.7000.
GBPINR continued the bear trend during the session and closed on a weak note.
If the currency pair sustains below 83.0000 then weakness may continue towards deeper support level. On higher side, 83.6000 is seen as important resistance.
JPYINR opened gap up and sustained near the resistance level on daily chart.
Now, 59.0000 may act as crucial resistance for the counter holding above which can lead it towards northwards. On lower side, 58.6000 is seen as major support for it.
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