USD/INR DAILY

Forex Market

Dollar continued to trade in uptrend trend with november contract closing near high at 46.73 levels from a flat opening of Rs.46.58/USD.Some important events both on the domestic front as well as internationally are expected to guide the prices of USDINR for today.Firstly it will be the monetary policy of India which will be in focus where RBI will come up with REPO, Reverse REPO and CRR statements.We expect RBI to keep them un‐changed, however the statement from RBI governor will assume its significance. We expect a hawkish statement from RBI governor indicating the time frame where the Central Bank might look forward to increase the interest rates. In other news RBI survey of Professional Forecasters suggested a downward revision in the growth outlook for 2009‐2010 from 6.5% to 6%. In the international currency markets, the dollar index strengthened and touched 76 levels after speculation that U.S lawmakers will phase out a tax credit for the Home buyers and Bank of America will sell shares to pay back its government’s bailout. Overall we expect a gap up opening for USDINR with 47.15 levels acting as a crucial resistance.