USD/INR DAILY

Dollar fell on Tuesday as the critical level of 46.45 was breached by the currency pair indicating bearishness. USDINR near month futures opened the day at 46.65 and closed near lows at 46.40. Along with the dollar, the stocks market also showed correction with Nifty correcting by 13 points to close at 5090 levels. Ample liquidity in the system saw recovery in Nifty which was down by 50 points during intraday in yesterday’s trading session. The GDP data of America was unchanged as world’s largest economy rose by 2.8% as expected by the markets. However fall in Personal Consumption could hamper growth in coming months and is being viewed as a concern. Personal consumption fell by 2.9% from 3.4% previously. However sentiments remained positive with consumer confidence rising to 49.5 from 47.7 previously. The net effect of these data was fall in dollar index. Dollar index fell below 75 levels to 74.96 levels indicating continuation of money flow in asset classes across the globe. For today we expect a gap down opening of USDINR with 46.20 acting as a key support. In medium term we expect pair to touch 45.00 in coming months.

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