R EE E K L Y P O R T
05 AUGUST - 09 AUGUST 2013
Buy on fear, sell on greed.
Buy on the rumor, sell on the news.
The trend is your friend.
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MARKET EVENTS Hapless Rupee sinks to new low as policymakers' rescue measures fail to yield results. Rupee Leads Weekly Decline in Asian Currencies Amid Fed Concern. Sterling rise, gilts fall on strong UK construction PMI. Australian dollar hits three-yr lows, kiwi dollar follows.
KEY RATES As on 02/08/2013 % CHANGE 3.96
The Indian rupee slumped to its lowest closing amid investor jitters that measures to cure the currency's ills are hardly working. Fears that the economic slowdown may worsen in the wake of rising interest rates and portfolio outflows due to rising yields in the US are aggravating the currency's fall. Despite the Reserve Bank of India curbing speculation by international investors, the currency continued its decline as better returns in the US - S&P 500 is at an all-time high and yields at 2.7% on treasuries yield more than 8.3% on Indian bonds, adjusted for hedging currency risk. The rupee fell 1.1% to 61.10 per dollar, worse than its previous closing low of 60.44.
REFERENCE RATE (USD)
USDINR on daily charts tested its all time high last week and settled on a strong note indicating further bullishness above 61.5500 towards the psychological resistance mark of 62.0000. While correction is seen if it holds below 60.5000 and 23.6% retracement of 59.7000 will act as good support for the coming week.
EURINR on daily charts after giving breakout of triangle pattern tested all time high and still is trading in strong zone. Strength will be maintained till it sustains above the major support of 79.6000 while any closing below this key support will result in some correction where support http://www.trifidresearch.com range is seen around 78.9000-78.4000.
PIVOT TABLE CURRENCIES
INTERNATIONAL UPDATES Dollar Rallies as Fed Fails to Erase U.S. Stimulus Speculation. Rupee Leads Weekly Decline in Asian Currencies Amid Fed Concern. Gilts Decline as U.K. Data Diminish Safety Demand; Pound Weakens.
ISM Non Manufacturing PMI
Consumer Credit m/m
The Indian rupee slumped to its lowest closing amid investor jitters that measures to cure the currency's ills are hardly working. Fears tha...