Currency Market

USD/INR DAILY



Dollar touched Rs.47.45/ USDafter a  25 paisa gap up opening, indicating that bullishness has returned to the currency pair. The currency pair rose approximately 47 paisa from the previous close indicating high volatility. The prime factors that moved the pair were (1) a rising dollar index and (2) a falling equity markets.
Dollar index touched 76.42 levels as investors moved to safe haven asset classes from riskier assets like stocks and commodities. The anticipation of rise in interest rates in coming quarters is being discounted by the markets. . Dow Jones fell by 119 points to close at 9762 after weaker than expected results of American corporate. Added to this, unexpected decrease in U.S home sales in September damped demand for high yielding assets. Nifty continued to fall for the seventh consecutive session with index falling by 20 points at 4826 levels. Tuesday’s monetary policy continued to show its effect with banking sector leading the fall.
With USDINR breaching the 47.20 level, the intermediate term trend has become bullish. One can expect the pair to touch 48 levels form here in coming days. For intraday, 47.20 will act as a crucial support level.



                    Pivot           Support 1        Support 2         Resistance 1         Resistance 2 
Spot              47.26           47.14            46.91                47.49                   47.61 
Nov. Future 47.33                47.20          46.99              47.55                    47.68