The rupee ended at 46.55 against the dollar, above Tuesday’s close of 46.68. The dollar index, a gauge of the US unit’s performance versus six majors, was down 0.4% by late evening.
The sterling and the euro extended losses on Wednesday, dipping below the $1.62-mark for the first time since mid-October, hurt by worries about Britain’s fiscal position. The Indian forex market
tracks the euro and the sterling for clues.

The sterling fell as low as $1.6199, the lowest since October 15. The euro also fell to a one-month low against the dollar on Wednesday, as investors unwound positions in riskier assets ahead of the year-end, prompted, in part, by rising debt woes for Greece and Dubai.

Middle Eastern development and real estate concern asked for a six-month standstill agreement with creditors.  More importantly today, perhaps, Fitch cut Greece’s credit rating to BBB+ from A- and cited concerns over Greece’s medium-term outlook for public finances.  This downgrade in sovereign credit risk impacted the common currency and this could put a small amount of upward pressure on eurozone interest rates, especially if there are concerns that other eurozone countries face a similar action from the ratings agencies.  A further decline in corporate and sovereign credit ratings or credit outlooks could negatively impact the markets and lead to additional safe-haven buying.  These credit actions come at a time when the U.S., U.K., and Japan face immense questions over their public finances with some speculators guessing at least one of those sovereign names could experience a credit downgrade in due course.


(Bid Price) (Today’s Intraday Range)

EUR/ USD     1.4704                1.4867, 1.4679
USD/ JPY        88.38                  89.47,   88.17
GBP/ USD     1.6287                           1.6476, 1.6255
USD/ CHF     1.0266                           1.0285, 1.0163
AUD/USD      0.9046                           0.9163, 0.9019
USD/CAD      1.0631                           1.0670, 1.0486
NZD/USD      0.7073                0.7171, 0.7046
EUR/ JPY      129.98                           132.68, 129.65
EUR/ GBP     0.9026                           0.9093, 0.9007
GBP/ JPY      143.99               147.15, 143.57
CHF/ JPY        86.07                 87.75,   85.84

Support                     Resistance               Support                  Resistance

EUR/ USD                                                          USD/ JPY

L1.       1.4470                                    1.4915                                       88.60                         93.30

L2.       1.4355                         1.5140                            87.10                          95.50
L3.       1.4175                         1.5360                            86.10                          98.85

GBP/ USD                                                       USD/ CHF

L1.       1.6115                                    1.6685                                    1.0275                                    1.0580

L2.       1.5720                                    1.6830                                    1.0040                                    1.0695

L3.       1.5405                                    1.7040                                    0.9750                                    1.0885

AUD/ USD                                                       USD/ CAD

L1.       0.8450                                    0.8830                                    1.0535                                    1.0945

L2.       0.8300                                    0.9050                                    1.0365                                    1.1125

L3.       0.8070                                    0.9120                                    1.0155                                    1.1355

NZD/ USD                                                       EUR/ JPY

L1.       0.6880                                    0.7125                                    131.45                                    135.75

L2.       0.6750                                    0.7260                                    129.75                                    136.90

L3.       0.6535                                    0.7395                                    127.00                                    138.75

EUR/ GBP                                                       EUR/ CHF

L1.       0.8795                                    0.8995                                    1.5110                                    1.5380

L2.       0.8675                                    0.9105                                    1.4905                                    1.5580

L3.       0.8320                                    0.9225                                    1.4670                                    1.5880

GBP/ JPY                                                        CHF/ JPY

L1.       146.10                                    152.50                                      86.30                                     88.65

L2.       142.05                                    157.75                                      85.40                                     90.10

L3.       135.70                                    161.70                                      81.55                                     91.60

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