Rupee price action remained positive and ended the day with a gain of 0.17 percent. For today crucial support seems at 46.65 and trade is expected to remain positive as long as price keeps trading above this level. An intraday breach above the 46.77 would be positive and would attract buying to test next resistances at 46.87 and 46.96.
Although long must be cautious about the breach below 46.65 which would be negative and would attract sell off to test next supports at 46.57, 46.52 and 46.47. Intraday long must place their stops at or near 46.65.
Expect prices to trade sideways/up with focus being on the breach above 46.77 or below 46.65
INR/USD:
Quick Recap:
Rupee weakened marginally against the dollar on Wednesday tracking the domestic equity indices. There was neither any demand nor any supply in the market ahead of the year‐end. Rupee moved in a narrow range of 10 paise on account of the currency tracking the domestic equities. Rupee opened at 46.77 and ended the day at 46.74, against the previous day close of 46.67. In the overseas market, the dollar strengthened against other major currencies. In the forward premia market, the six‐month premium ended lower at 3.02 % from 3.10% and the one‐year ended at 2.86 % from 2.94%.
Dollar traded firmly against the Euro & other major currencies in Asian & European session. Euro declined to low of 1.4273 from the high of 1.4361 in NY trades after being trading firmly during Asian & European session.
Dollar index increased yesterday to five days high of 78.21 in Asian & European session then declined to 77.33 & closed 78.06 marginally higher than previous close of 77.06 on Tuesday. Data from US was dollar supportive, ISM‐Chicago PMI jumped to 60.0 in Dec from 56.1 in Nov. The employment index rose to 51.2 in Dec from 41.9 in Nov.
Market Outlook:
Rupee moved in tight range on Wednesday, 46.65 to 46.78 amid thin volumes, lackluster domestic equity markets ahead year end long weekend holidays. Rupee’s trading range seen for the day is 46.65/70 to 46.90/95 with sideways trend; however month dollar demand could put pressure on rupee. Dollar strength in overseas market came in more overnight, thereby rupee could open with negative gap & if greenback continues hold the gains then it could press rupee to downside.
