Emerging markets like India are prepared for a shift to higher interest rates in USA and other developed nations. Economic fundamentals and growth potential of every nation will dictate the trend of currencies for the rest of the year.
Unconfirmed reports suggest that state run bank have been buying US dollars to meet demand for some defence company. Further the reserve bank of India will be uncomfortable if the rupee weakens sharply in the near term. RBI will continue to intervene in the Indian forex markets.
Usd/inr July 2014: It needs to break and trade over 60.42 for 60.62-60.86. Initial support is at 60.12 and 59.96.
Euro/inr July 2014: It fall to 81.65 and 81.20 as long as it trades below 82.05. Only a break of 82.05 will result in further rise.
Gbp/Inr July 2014: Cable needs to trade over 103.24 to rise to 103.76-104.10. There will be sellers only below 103.24 to 103.07-102.82.
Jpy/Inr July 2014: Yen/inr needs to break and trade over 59.52 for 59.76-60.12. Initial support is at 59.2750 and there will be sellers only below 59.2750.
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