Forex
Dollar corrected by 40 paisa from Tuesday’s close as the currency pair reversed the moves on Wednesday amid high volatility in stock markets. Dollar which opened the day at 47.25, around 20 paisa down from previous close fell further to close at 47.09. Nifty rose by 146 points or 3.22% to close at 4710 levels.
Dollar index touched 75.83 levels from 76.30 previously after Federal Reserve reiterated a pledge to keep borrowing costs near zero levels. Euro rose after the announcement as pair touched 1.4845 levels from previous close of 1.4718 levels. Looking at Indian bond yields, the yield of 10 year benchmark bond was quoted at 7.25% down from 7.30%. Bond yields have been on decline after RBI increased the SLR rates from 24% to 25% thereby ensuring ample liquidity in the bonds market. Bond yields which touched 7.45% two weeks back are expected to touch 7.15% in coming days. We continue to stand by the view that the near month futures pair should trade in the range of 47.65 and 46.50 for some time, For the day the pair should hold 46.85 level, if it breaks that the next support would be 46.50.
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