The Rupee appreciated 8 paise to hit a fresh 16-month high of 65.38 a dollar level in early trade on Monday. The domestic currency had a high of 65.41 last week after the Fed comments at the end of its two-day policy meeting looked less hawkish than expected. The election results were overwhelmingly positive and that actually gave a boost to the rupee.
The dollar slowly ceded ground in Asia on Monday with greenback bulls still nursing grudges after the Federal Reserve’s rate guidance last week proved to be less “hawkish” than many had wagered on.
• Dollar falls for 4th day after G20 trade message.
• Asian currencies rise broadly; Taiwan dlr hits 22-month high.
• German Producer prices in February 2017: +3.1% on February 2016.
• China’s yuan weakens slightly as jitters ease after short-term rate hike.
USDINR opened gap down and sustained at lower levels for the entire session to close on a weak note.Now, 65.3000 is seen as key support from the current levels sustaining below which can lead it to deeper supports whereas 65.8000 is seen as immediate resistance.
EURINR slipped below the previous close and traded on lower levels.Further weak trend can drag the currency pair towards the next support of 70.1000 while 70.9000 may resist the pair to move northwards.
GBPINR was able to sustain at higher levels for the second consecutive session.
Strength above 81.5000 can lead it to higher levels while if it faces resistance at such levels then it may drag towards the support of 80.5000.
JPYINR opened strong but gradually dropped during the session and finally closed on a flat note.
It seems that the currency pair is taking resistance at higher side then 57.6000 is seen as immediate support whereas 58.3000 will continue to act as resistance.
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