R EE E K L Y P O R T
10 SEPT - 13 SEPT 2013
Buy on fear, sell on greed.
Buy on the rumor, sell on the news.
The trend is your friend.
Amateurs want to be right.
Professionals want to make money.
The rupee rallied for a second consecutive session on Friday to its strongest against the dollar in nearly two weeks on growing expectations the currency has been badly oversold, even as few traders expect a meaningful recovery. Sentiment has also improved since Reserve Bank of India Governor Raghuram Rajan unveiled a slew of proposals to support the rupee and open up markets on Wednesday, providing a breath of fresh air for investors unnerved by the country's worst economic crisis in two decades. India's foreign exchange reserves have dipped to $275.5 billion, a 39-month low, as Reserve Bank of India continued to sell dollars to support the battered local currency.
Forex reserves dip to $275 billion as RBI tries to stem rupee fall. India's forex reserves dip to three-year low. Rupee hits near two-week high; worst may be behind. Yuan headed for flat week; PBOC wants stability amid emerging market rout.
KEY RATES As on 06/09/2013 % CHANGE -1.53
REFERENCE RATE (USD)
USDINR last week found support around the trend line on daily charts while it may further fall towards 50% retracement of 64.2500 if it holds below this trend line. And if it shows any pull back towards higher side then resistance range is seen around 67.2000. Volatility is expected due to IIP data in the coming week.
EURINR last week showed bearish movements in the last few sessions and is expected to continue this in the coming week and on surpassing the support of trend line around 85.4000 it may further fall towards the major support 83.1000. If it shows some correction then resistance range is seen around 86.5000-87.5000.
PIVOT TABLE CURRENCIES
INTERNATIONAL UPDATES Yen Slides as Olympics Boosts Abe Optimism; Aussie Gains. Russia to Brazil Intervention Adds to U.S. Debt Distress. Australia Dollar Rises to Three-Week High on China Rebound Signs.
Core Retail Sales