Dollar

USD/INR Daily



Dollar futures gave up its gains on Thursday after touching multi week high of 47.74 in morning session. Dollar closed at Rs.47.31/usd a fall of 43 paisa from the high as dollar index fell after 5 days of rise to touch 75.79 from high of 76.63 which it touched on Wednesday. However divergence was seen between USDINR and Indian Equity markets as despite fall in currencies, Nifty also fell and closed 75 points down at 4750 levels. Monthly expiry of futures contract was the key reason behind the fall in equity markets as bulls remained under pressure this month. One of the key indicators responsible for reversal in major asset classes was the GDP data of U.S. American quarterly GDP figures surpassed expectations as the world’s largest economy rose by 3.5% against anticipation of 3.2%. Dow Jones rose by 199 points or 2.05% after release of this data with index touching 9962 points. India’s inflation continued to rise with WPI rising by 1.51% against previous week’s rise of 1.21%. Looking at today’s trend of USDINR we expect a gap down opening of the currency pair. 46.97 is expected to act as a crucial support for the pair on intraday basis.