RBI governor yesterday warned of the spillover effects in the form of another emerging market crisis if and when the Federal Reserve starts to raise interest rates next year. He further said that emerging markets will increase their foreign exchange reserves and also prevent currencies from big gains in the near term. This to me implies that in the short term emerging markets will see huge inflows and the pressure to appreciate for currencies like India. Traders will now take positions for Tuesday due to a Monday holiday. Intraday volatility will rise as result of the same.
India is set to take a major step tow and currency internationalization with World Bank plans to double its offshore rupee bond program to $2 bn and push leading Indian companies to raise global rupee-linked debt for the first time. This implies more inflows into India.
Usd/Inr April 2014: Resistance is at 60.8025 and till Monday only a break of 60.8625 will result in further gains. In case usd/inr does not break 60.8025 by Tuesday, then it will fall to 60.10 and 59.86.
Euro/Inr April 2014: Only a consolidated break of 84.23 will result in further gains to 84.76-85.02. Initial support is at 83.92 and there will be sellers only below 83.92
Gbp/Inr April 2014: It can rise to 102.15 and 103.07 as long as it trades over 101.29. There will be sellers only if cable trades below 101.29 in UK session.
Jpy/Inr April 2014: Resistance is at 59.71 and only a break of 59.71 will result in 60.14-60.57. Support is at 59.41 and there will be sellers only below 59.41
India is set to take a major step tow and currency internationalization with World Bank plans to double its offshore rupee bond program to $2 bn and push leading Indian companies to raise global rupee-linked debt for the first time. This implies more inflows into India.
Usd/Inr April 2014: Resistance is at 60.8025 and till Monday only a break of 60.8625 will result in further gains. In case usd/inr does not break 60.8025 by Tuesday, then it will fall to 60.10 and 59.86.
Euro/Inr April 2014: Only a consolidated break of 84.23 will result in further gains to 84.76-85.02. Initial support is at 83.92 and there will be sellers only below 83.92
Gbp/Inr April 2014: It can rise to 102.15 and 103.07 as long as it trades over 101.29. There will be sellers only if cable trades below 101.29 in UK session.
Jpy/Inr April 2014: Resistance is at 59.71 and only a break of 59.71 will result in 60.14-60.57. Support is at 59.41 and there will be sellers only below 59.41
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