Thursday, November 11, 2010

Currency Markets Today

The Indian rupee advanced against the US dollar during the later session on Wednesday while local stocks remained weak. The USDINR spot closed down at 44.30, unchanged from previous session. The Nov future USDINR closed at 44.52, up by 1 paisa. The pair posted a low of 44.4475 before a mild pullback at the closing bell.

The Euro dropped further against the Indian rupee on Wednesday on weak guidance from the EURUSD. The EURUSD fell below the 1.80 and was stable below the 1.80 mark during the mid European session The EURINR for Nov expiry on Indian exchanges fell as much as 1% to close at 61.3025. The GBPINR Nov futures fell to 71.11, but witnessed late hour recovery on pullback in the GBPUSD after the UK quarterly inflation report. The GBPINR Nov contract closed at 71.49, still down 35 paisa.

USDINR Nov: The market is expected to stay weak below the stiff resistance area of 44.60-44.65. The immediate support level is seen at 44.40 and below that it may fell towards 44.25 levels. Trend remains sideways for the session, while we recommend staying on the selling side for intraday.

EURINR Nov: The market has a resistance at 61.45 and above that we can expect a pullback towards 61.60 levels. The support is seen at 61.15-61.20 levels. Trend remains weak and we see some recovery today. Selling is recommended on a pullback towards 61.60-61.65 range.

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