WEEKLY FOREX TECHNICAL REPORT 03 MARCH TO 07 MARCH 2014
The rupee today rose 23 paise to an over five-week closing high of 61.75 against the US dollar on exporters selling the American currency and positive cues from local equities, to clock the best monthly gain since October 2013. The sentiment in favour of the rupee also firmed up on sustained capital inflows and a sharp fall in dollar traded in the overseas market downbeat fiscal deficit data failed to temper the enthusiasm. Government’s fiscal deficit in the 10 months through January 2014 has overshot revised estimates of Rs 5.24 lakh cr for this fiscal provided by Finance Minister P Chidambaram in his interim Budget.
Domestic Forex markets Updates :
- Rupee up 23 paise at 61.75 vs $, logs best monthly gain since Oct.
- Yen gains on emerging nerves, Swedish crown jumps after GDP.
- Yuan’s fall raises risk of big losses on offshore products.
- Euro hits 2014 high vs dollar after inflation tops forecasts.
USDINR last week again consolidated in the same range as of previous week and closed flat. It is taking regular support of the trend line on daily charts and so 61.8500 has now become as major support and any closing below this mark may drag it towards the support of 61.4000. On higher side, if it sustains above 62.5500 then only strength is expected.
EURINR last week gained momentum and closed with positive bias. This positivity may continue if it sustains above 23.6% retracement of 85.9000 where 86.3000 may act as next resistance for it. On lower side, 50% retracement of 85.0000 may act as immediate support surpassing which selling pressure may be seen.
Global Forex Updates:
Euro Gains Most in 10 Months as Prices Trim ECB Bets; Yuan Falls.
- Yuan Drops Most on Record Amid Band Widening Speculation.
- Real Slumps as Brazil Posts Widest Budget Deficit in Four Years.
Source: Trifid Research