Dollar Daily
Dollar traded stronger on Thursday after five consecutive sessions of downtrend as rise of dollar index supported the currency markets. Dollar near month futures opened the day at 46.36 and closed near the highs at 46.63 rising about 27 paisa. Equity markets fell as Nifty closed 51 points down or 1.03% at 4952 points.
In what can be termed as bottom hunting, Dollar index rose from its crucial support levels of 74.85 and was trading at 75.60. The buying was witnessed as President Obama begins his 9‐day tour to China amid speculation that he would press for re‐valuation of yuan which has been tightly controlled by Chinese Central Bank. Another key reason for rise of Dollar Index was lower than expected weekly jobless figure which provide some relief to American planners. Unemployment rate has touched 26 year high in America causing widespread concerns and forcing Fed to keep its interest rate near zero levels. Better than expected Industrial production figures did not have any effect on USDINR, as it was under influence of international currencies rather than domestic factors. IIP rose by 9.1% from expectation of 7.0% for the month of September. For today we expect USDINR to rise with 46.95 acting as a crucial resistance for the pair. We recommend buying on dips for today.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment