USD/INR DAILY

Dollar continued its fall against the Rupees as dollar index fell amid stronger American economic data. Dollar December futures fell to 46.30 levels after opening at 46.40 yesterday. Indian equity markets rose with Nifty closing 17.60 points up at 5108 as a falling dollar index lead to bullish sentiments. Dollar index which had breached 75 level mark yesterday fell further and was quoting at 74.388 levels in early morning trades on
Thursday. Positive U.S economic data ahead of the Thanksgiving holiday was the key reason that triggered this fall. Personal Income rose by 0.2% as against market expectation of rise of 0.1%. Personal Spending also rose by 0.7% against 0.5% previously. Jobless claims which have been rising for some time fell and was quoted at 466K against 505K previously. University of Michigan Confidence also increased and it stood at 67.4 against expectation of 66.0. In domestic bond markets, the yields of 10 year benchmark bond fell below 7.20% and was quoting at 7.18% yesterday. For today we expect USDINR to fall further with 46.05 acting as crucial support. In medium term we expect USDINR to touch Rs.45.00/USD.