Intraday Dollar Trend

Dollar continued its downtrend against the rupee on Wednesday as the pair fell by 33 paisa from previous close to end the day at

Rs.46.70/USD. The de‐link of the currency pair from the equities market continued for the third consecutive session with Nifty closing down

by 41 points at 4985 points. Speaking of the international markets the dollar index quoted lower at 76.10 from 76.40 levels on Tuesday.

Dollar index has been in a bearish trend especially after Australian Central Bank increased its interest rates.

In the domestic bond markets RBI auctioned Rs. 20 billion (Rs.2000 Cr.) of 365 day Treasury Bill at yield of 4.59% compared with previous

auction’s yield of 4.33%. The rise in medium term yields comes in line with RBI Governor’s statement a few day’s back that the regime of

lower interest rates is over and govt. might take lead among other emerging nations in increasing the rates. The 10 year benchmark bond

yields also increased to 7.28% from 7.21% the day before which was a direct implication of bond auction results.

Looking at intraday trend one can expect USDINR to remain under pressure below 46.76 levels.

Pivot Support 1 Support 2 Resistance 1 Resistance 2 ICSC Chain Store Sales YoY ‐1.50% ‐2.00%

Spot 46.68 46.48 46.28 46.88 47.09

Oct. Future 46.77 46.33 46.29 46.81 47.25