Indian rupee has resistance at 61.95/USD in spot: IIFL

IIFL's report on currencies

Fundamental View
USD‐INR

Dollar/rupee opens up Tuesday on aggressive dollar buying by importers to settle their monthly bills as month‐end approaches while exporters stayed away from market waiting for the central bank's monetary policy though weakness in other currencies put some pressure on Indian rupee

Exporters are staying away from market, as they sought more clarity on Reserve Bank of India's monetary policy while importers are still buying to meet month‐end dollar requirements to settle accounts

Dollar/rupee pared gains in afternoon trade Tuesday after central bank announced the hiking of key lending rates by 25 basis points, on expected lines, to control inflation

The Reserve Bank of India Tuesday hiked its key lending rate or the repo rate by 25 basis points while cutting the Marginal Standing Facility by 25 basis points in a bid to normalise the rate corridor.

Cross‐currencies

Euro/dollar may climb to two‐year high this week on hopes that Federal Reserve will delay tapering its fiscal stimulus plan to first quarter of the new year

Euro last week touched its highest level against the dollar in nearly two years as the data released by the US labour department showed that the US economy generated lesser jobs in September and also as initial jobless claims remained elevated despite re‐opening of the US Government after 16‐days of partial shut down.

Technical View

USD‐INR SPOT RATE: Prices have support at 60.90 and resistance at 61.95

NSE USD‐INR FUTURE: Prices have support at 61.30 and resistance at 62.35

EUR‐USD (1.3739): Prices have support at 1.3670 and resistance at 1.3870.

US Dollar Index (79.66): Prices have support at 78.80 and resistance level at 80.

INR Currency Future view

EUR‐INR (Close: 84.35): Prices have support at 83.60 and resistance at 85.50.

GBP‐INR (Close: 98.40): Prices have support at 96 and resistance at 99.60.

JPY‐INR (Close: 62.95): Prices have support at 61.50 and resistance at 64.

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