The Indian rupee steadied against US dollar on Thursday after an early rise. On futures market,
the April contract closed the session unchanged at 44.37.The dollar extended broad losses
against major currencies on Thursday, lifting the euro to a 16-month peak above $1.46 as
market players seized on the upbeat mood in equities to sell the greenback for riskier assets.
The USDINR dropped to 44.26, but later recovered on short coverings. Friday Indian markets
were closed due to Good Friday.
The EURUSD gained above 1.46 marks and later corrected towards 1.4530 and currently in
Asia is trading around 1.4540 levels. The Euro and counterpart GBP was lifted by positive
sentiment in global stock indices. Better than expected first quarter earnings helped push the
Dow Jones Industrial Average to its highest level in over three years. The upbeat earnings
announcements overshadowed somewhat lackluster housing market data released during the
week. The GBPUSD rose to 1.66 levels On Thursday and now trading around 1.65 levels in Asia.
The UK official data is likely to demonstrate that Britain's economy has returned to growth
after the shock 0.5% contraction at the end of last year and this may be slightly supportive for
the cable. The contraction in the economy in the last quarter of 2010 was blamed on the
unusually heavy snow; without the impact of the weather the growth in the economy would
have been flat.
For today, the US dollar may see some mild recovery against the Indian rupee, Euro and then
British pound after sharp selling from past few days. Asian stocks are slightly higher today
along with Dow future which is up by just 9 points as of now.
USDINR Apr: The market is expected to stay firm as long as it holds the support of 45.35 levels. The immediate resistance is seen at 45.60 levels. We recommend buying on dips towards
the support of 45.35 levels for intraday. In the short term, pullback is possible in the pair towards 44.75 levels.
EURINR Apr: The EURUSD has a support at 1.4500 levels and breach of the same may push the pair lower towards 1.4420 levels and hence the EURINR lower. Technically, the EURINR is
expected to see some correction if it breaches the support of 64.50 levels. Trend remains bullish but the market is at overbought levels.
GBPINR Apr: The pair has a support at 73.20 levels and as long as it holds the same firm moves can be expected for intraday. The resistance is seen at 73.55 and then 73.70 levels. We
recommend buy on dips on GBPINR for intraday.