USD/INR DAILY

Forex
Dollar rose by 40 paisa against the Rupee as the pair touched Rs.47.45/USD amid global pressure on equity market arising out of Europe on news that some of the top banks may further require stimulus packages to survive. Nifty fell by 147 points or 3.14% as it closed the day at 4563 levels. Commodity linked stocks like Oil and Gas as well as basic materials were the key sectors that spearheaded the fall. Panic gripped the markets on announcements that Royal Bank of Scotland may need more taxpayer funds despite U.K government announcing a £33.5 billion bailout package for the bank, the biggest of its kind in the world. Dollar rose against European currencies after this news with EURUSD making a panic bottom of 1.4620 while GBP touched 1.6260 against the dollar. The international factors were significant enough to turn a blind eye to domestic trade data which was better than previous month. India’s export declined the least this year s economy recovery in U.S and Europe boosted demand for the countries products. Exports dropped 13.8% in September from a year earlier to $13.6 billion after sliding 19.4% in August. While imports dropped by 31.3% in September as compared to drop of 32.4% in August. We feel a pullback in equity markets will lead to some weakening in USDINR pair with 47.20 acting as a crucial support for the pair in intraday.