USDINR spot has support at 53.80: IIFL

IIFL has come out with its technical and fundamental view on currencies. According to the research firm, USDINR spot prices have support at 53.80 and resistance at 54.20.

Fundamental View

USD-INR

Dollar/rupee opened down Friday on hope US Federal Reserve will continue with its asset purchases as US inflation is in the central bank's comfort level and as euro-zone finance chiefs called on focusing restoring growth over austerity

Dollar/rupee fell below Rs 54/$1 on foreign banks amid inflows related to National Aluminium Company and tracking gains in euro

Cross-currencies

Euro/dollar rose to one-week high Friday after euro-zone consumer price index accelerated reducing the prospects of monetary easing by the European Central Bank

The U.K. economy shrank in the final quarter of 2012 and recent data suggest it may shrink again in the first three months of 2012, putting the U.K. at risk of a "triple-dip" recession, its third downturn in five years. A recession is typically defined as two consecutive quarters of falling output.

The main event in Japan was the parliamentary approval of Haruhiko Kuroda and his deputies to take over the Bank of Japan. The development means that the central bank will be under new management from March 20, which is widely expected to lead to the implementation of more aggressive monetary policy, perhaps as soon as April.

Technical View

USD-INR SPOT RATE: Prices have support at 53.80 and resistance at 54.20

NSE USD-INR FUTURE: Prices have support at 53.90 and resistance at 54.30

EUR-USD (1.2908): Prices have support at 1.2665 and resistance at 1.3050.

US Dollar Index (82.78): Prices have support at 82.10 and resistance level at 84.

INR Currency Future view

EUR-INR (Close: 69.76): Prices have support at 69.20 and resistance at 70.50.

GBP-INR (Close: 81.60): Prices have support at 80.50 and resistance at 82.60.

JPY-INR (Close: 57.20): Prices have support at 56.80 and resistance at 58.

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