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Currency Update: Indian rupee fell against the American dollar in the week gone by - IndiaNotes.com
Currency Update: Indian rupee fell against the American dollar in the week gone by
SMC | Published: 11 Jul, 2017  | Source : IndiaNotes.com

Market Stance

 

Indian rupee fell against the American dollar in the week gone by and tested one month low on local bourses due to fresh demand for the American currency from importers. Moreover, the implementation of the Goods and Services Tax (GST) too spelt worries that the new indirect tax regime could bring some renewed upturn in inflation and may impact the economic growth. The GST; India's biggest tax reform since Independence came into force on July 1. On the global front, the greenback held onto gains against the other major currencies but gains were limited amid expectations for tighter monetary policy by major central banks. However, sharp losses in local unit remain capped amid robust capital inflows in domestic equities. In other currencies, the dollar hit a seven-week high against the yen after the Bank of Japan increased its purchases of government bonds, expanding monetary policy at a time when other major central banks are moving towards tightening.


Technical Recommendation


USD/INR

 

USD/INR (JULY) contract closed at 64.95 on 06th July'17. The contract made its high of 65.12 on 03rd July'17 and a low of 64.85 on 03rd July'17 (Weekly Basis). The 14-day Exponential Moving Average of the USD/INR is currently at 64.78.


On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 58.34. One can sell below 64.75 for the target of 64.20 with the stop loss of 65.05.


GBP/INR


GBP/INR (JULY) contract closed at 84.17 on 06thJuly'17. The contract made its high of 84.57 on 03rd July'17 and a low of 83.89 on 05thJuly'17 (Weekly Basis). The 14-day Exponential Moving Average of the GBP/INR is currently at 83.39.


On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 62.61. One can sell below 83.50 for a target of 82.90 with the stop loss of 83.80.


EUR/INR

 

EUR/INR (JULY) contract closed at 73.92 on 06th July'17. The contract made its high of 74.21 on 03rd July'17 and a low of 73.67 on 05th July'17 (Weekly Basis). The 14-day Exponential Moving Average of the EUR/INR is currently at 73.25.


On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 68.78. One can buy above 74.10 for a target of 74.80 with the stop loss of 73.75.


JPY/INR


JPY/INR (JULY) contract closed at 57.36 on 06th July'17. The contract made its high of 57.76 on 03rd July'17 and a low of 57.26 on 05thJuly'17 (Weekly Basis). The 14-day Exponential Moving Average of the JPY/INR is currently at 57.74.


On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 41.22. One can sell around 57.25 for a target of 56.50 with the stop loss of 57.60.

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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.