USD/INR DAILY

In continuation of the downward trend being witnessed in USDINR, the pair fell and traded below the 46.15 levels for most part of the day eventually closing at 46.27 levels. The fall in dollar was the outcome of bullish trend witnessed in the equity markets as well as fall in dollar index. Nifty rose by 59.10 points or 1.18% to close the day at 5058 points. Buying was also witnessed in other indices across the globe with Dow Jones
rising by 1.33% or 136 point to trade at 10406. Dollar index continued to trade near 15 months low at 74.97 after investors questioned Federal Chairman Ben .S, Bernanke’s ability to bolster the greenback after he pledged to support it. In a speech to Economic Club of New York the Chairman stated that Economic “headwinds” of reduced bank lending and a weak labor market will probably restrain the pace of U.S economic recovery and warrant continued low borrowing cost. In domestic news The RBI released Survey of professional Forecasters which indicated that Indian economy may grow by 6% in FY10. For Today we expect 45.90 to be a key support level. A breach of that levels will take the pair towards 45.75. In medium term one can expect USDINR to touch 45.00.