Reserve bank of India meeting will give an outlook for inflation and growth. Global investors are mulling manufacturing in India. There has been a change in law for online sellers. Global brands can online sell in India if they along with their Indian counterpart manufacture (in India) three fourth of the products sold in India. Indirectly the government intends to allow foreign direct investment in single brand retail but with a rider to “Make in India”. These along other measures will result in continued US dollar inflows in India.
Currency traders are expecting euro/usd to fall to 1.20 in the next one year. Rupee may be affected marginally by strong gains in the US dollar. Fiscal deficit reduction, food price inflation control and ability of the NDA government to ensure smooth passage of key reform bills in both houses of the parliament will affect the Indian rupee more than global factors. The Reserve bank of India is prepared for interest rates hike by the Federal Reserve upto one percent.
Rupee will fall if and only if short sellers come up and/or large Indian corporates start to sell. Better to remain on the sidelines. The upcoming banking holidays can result in two way movement till tomorrow.
Usd/inr October 2014 (expiry on 29th October): Resistance is at 62.0550 and only a break of 62.0550 will result in further rise to 62.3775. Initial support is at 61.76 and there will be sellers only below 61.76 or in case 62.0550 is not breached today.
Euro/inr October 2014 (expiry on 29th October): Euro/inr needs to trade over 78.49 to rise to 78.96-79.37. There will be sellers only if it trades below 78.49 in UK session.
Gbp/Inr October 2014 (expiry on 29th October): It needs to trade over 100.32 to rise to 100.9550-101.3725. There will be sellers if cable trades below 100.32 in UK session with 100.17 and 99.99 as the key supports.
Jpy/Inr October 2014 (expiry on 29th October): There is a technical congestion between 56.10 and 56.20. As long as jpy/inr trades over 56.10-56.20 zone, it can rise to 56.8550 and 57.9475. Jobbers watch 56.5050.
Currency traders are expecting euro/usd to fall to 1.20 in the next one year. Rupee may be affected marginally by strong gains in the US dollar. Fiscal deficit reduction, food price inflation control and ability of the NDA government to ensure smooth passage of key reform bills in both houses of the parliament will affect the Indian rupee more than global factors. The Reserve bank of India is prepared for interest rates hike by the Federal Reserve upto one percent.
Rupee will fall if and only if short sellers come up and/or large Indian corporates start to sell. Better to remain on the sidelines. The upcoming banking holidays can result in two way movement till tomorrow.
Usd/inr October 2014 (expiry on 29th October): Resistance is at 62.0550 and only a break of 62.0550 will result in further rise to 62.3775. Initial support is at 61.76 and there will be sellers only below 61.76 or in case 62.0550 is not breached today.
Euro/inr October 2014 (expiry on 29th October): Euro/inr needs to trade over 78.49 to rise to 78.96-79.37. There will be sellers only if it trades below 78.49 in UK session.
Gbp/Inr October 2014 (expiry on 29th October): It needs to trade over 100.32 to rise to 100.9550-101.3725. There will be sellers if cable trades below 100.32 in UK session with 100.17 and 99.99 as the key supports.
Jpy/Inr October 2014 (expiry on 29th October): There is a technical congestion between 56.10 and 56.20. As long as jpy/inr trades over 56.10-56.20 zone, it can rise to 56.8550 and 57.9475. Jobbers watch 56.5050.
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