Weekly Currency Market Report

Market Outlook

The rupee on Friday opened 28 points down at 71.3225 against the US dollar after Moody’s Investors Service changed the outlook on India’s ratings to ‘negative’ from ‘stable’, saying there was increasing risks that economic growth will remain materially lower than the past. It affirmed the Baa2 foreign-currency and local-currency long-term issuer ratings for India. The dollar held on to its gains versus the yen and the Swiss franc on Friday as a China-US agreement to roll back tariffs on each others’ goods supported riskier assets.

Fundamental News

  • The People’s Bank of China on Friday set its daily midpoint fix stronger than 7 yuan per dollar for the first time since early August.
  • The British Pound was little changed against the U.S. dollar but traded near a two-week low after two bank of England unexpectedly voted to cut interest rates.

USDINR found support on lower levels after negative opening of the week and showed bullish movements closed around its resistance. If able to sustain on higher levels then 72.0000 is seen as strong resistance zone for the currency pair sustaining above this mark 72.6000 is next resistance for it. On lower levels 70.5000 is act as support for it.

EURINR showed correction from higher levels found support on lower levels and closed around it. If able to sustain below its immediate resistance of 79.0000 currency pair continue bearish movements and drag towards support zone of 78.0000. On higher levels psychological level of 80.0000 is act as strong resistance for it.

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