Rupee weakens on speculation the key bills may not be passed in current parliament session

There can be some big weakness in the rupee along with a crash in Indian stock markets, if there are any indication that the parliament session may not be able to pass key bills. It is performance time for the National Democratic Alliance (NDA). Any hints that do not perform (whether in the parliament or otherwise) can result in short term outlows by global investors in India. I will be closely watching the parliament session. Globally there is nothing much happening at the moment. But a lot can happen till next week with key central bank meeting (Reserve bank of India, European central bank meet next week) and lots of US economic data releases (third quarter GDP today and US November nonfarm payrolls next week). Investor are trying to assess just two things (A) How different nations will grow next year (B) Interest rates scenario in the first half of next year. 

Importers will be covering their near term payables on dips and more so if the weakness (In the US dollar-Indian Rupee) persists for the rest of the week. Month end demand is there for the time being. 

Usd/inr December 2014 (expiry on 29th December):  A break of 62.47 will trigger another wave of rise to 62.76 and 63.37. On the lower side 62.17 is the initial support with 61.94 as the key intraday support. 

Euro/inr December 2014 (expiry on 29th December): It can rise to 77.62 and 77.96 as long as it trades over 77.32. There will be sellers only if euro/inr trades below 77.32 with 77.09 as the key intraday support. 

Gbp/Inr December 2014 (expiry on 29th December): It can rise to 97.96 and 98.56 as long as it trades over 97.54. Key support till Friday is at 97.12. 

Jpy/Inr December 2014 (expiry on 29th December): It can rise to 53.45 and 55.36 as long as it trades over 52.76. There will be another wave of selling only below 52.76.We are against going short Jpy/inr.