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Currency Update: The USD-INR pair continued to consolidate in a very narrow band - IndiaNotes.com
Currency Update: The USD-INR pair continued to consolidate in a very narrow band
SMC | Published: 28 Jun, 2017  | Source : IndiaNotes.com

Market Stance

 

The USD-INR pair continued to consolidate in a very narrow band, with the dollar index rising from recent lows and the dollar gaining against most other currencies. Caught in a downward spiral for the third straight session, the Indian currency traded lower on steady dollar demand amid deepening global oil rout. Meanwhile, crude prices slid back towards multi-month lows on Thursday as traders warily eyed global supply glut that has persisted despite OPEC-led efforts to balance the market. Also the demand for the greenback from banks and importers weighed on trade. So far this year, the rupee has gained 5%, while foreign investors bought $8.16 billion and $13.86 billion in local equity and debt markets. The recent minutes of the MPC June policy meeting has raised expectations of monetary easing in subsequent policy reviews. The next trigger for domestic rupee appears to be the pace and quality of GST implementation.


Technical Recommendation


USD/INR

 

USD/INR (JULY) contract closed at 64.85 on 22nd June'17. The contract made its high of 64.98 on 21st June'17 and a low of 64.63 on 19th June'17 (Weekly Basis). The 14-day Exponential Moving Average of the USD/INR is currently at 64.81.


On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 47.74. One can sell around 64.80 for the target of 64.30 with the stop loss of 65.05.


GBP/INR


GBP/INR (JULY) contract closed at 82.26 on 22nd June'17. The contract made its high of 83.00 on 19th June'17 and a low of 81.89 on 21st June'17 (Weekly Basis). The 14-day Exponential Moving Average of the GBP/INR is currently at 82.83.


On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 36.81. One can buy above 81.9 for a target of 82.80 with the stop loss of 81.5


EUR/INR

 

EUR/INR (JULY) contract closed at 72.55 on 22nd june'17. The contract made its high of 72.72 on 19th June'17 and a low of 72.34 on 20th June'17 (Weekly Basis). The 14-day Exponential Moving Average of the EUR/INR is currently at 72.61.


On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 50.56. One can sell below 72.00 for a target of 71.00 with the stop loss of 72.50.


JPY/INR


JPY/INR (JULY) contract closed at 58.34 on 22nd June'17. The contract made its high of 58.55 on 21st June'17 and a low of 58.11 on 20th June'17 (Weekly Basis). The 14-day Exponential Moving Average of the JPY/INR is currently at 58.56.


On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 45.98. One can buy above 58.25 for a target of 58.90 with the stop loss of 57.90.

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About SMC
SMC Research, founded in 1990, is India’s leading share and stock broker, provides a wide range of financial services and investment solutions. A blend of extensive experience, diverse talent and client focus has made us the 4th largest broking house in India(Source: Dun and Bradstreet, 2008). Over the years, SMC has expanded its operations domestically as well as internationally. Existing network includes regional offices at Mumbai, Kolkata, Chennai, Cochin, Ahmedabad, Jaipur, Hyderabad, Bangalore plus a growing network of 2100+ offices spread across 425 cities/towns in India.


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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.