Forex Daily
Dollar traded positive on tuesday as weakness was seen in Equity markets after four seasons of rise. USDINR pair opened the day at Rs.46.41/USD and closed at Rs.46.51/USD. Dollar index rose from 15 year lows against other currencies on speculation that demand for riskier asset classes will drop. However sterling slid against the dollar as Fitch Ratings said that U.K.’s credit rating is the most at risk among top rated nations. While dollar index rose to 75.27 levels yesterday, sterling dropped to 1.6602 from previous high of 1.6843 against the dollar. Addressing Indian Economic Summit Finance Minister Pranab Mukherjee said that India will take “corrective” steps and pull back fiscal stimulus once economic recovery takes hold. He also emphasized the need to cut Budget Deficit which is the widest in past 16 years and ease pressure on countries credit rating. Bond yields stayed range bound as bond traders waited for Industrial Production report due to be released tomorrow. Markets expect Industrial production to rise by 7% in September from a year earlier.
Technically 46.50 will continue to be a crucial level for the pair. In intraday 46.30‐46.35 will act as a very crucial support for USDINR.
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