USD/INR DAILY

Dollar December futures opened the day at 46.30 and closed at 46.56 levels registering a gain of 26 paisa during the day. Nifty fell by 102 points or 2.01% to close at 5005 levels. International rather than domestic factors were primarily responsible for movement of USDINR pair. Initially it was fall in Chinese stock markets on news that Chinese top banks will have to raise capital to meet swelling loan demand. Chinese banks which have one of the

largest Non Performing Assets were asked by its regulator to estimate potential deficits in 2010 based on their own loan forecast as well as adhere to capital ratio targets. Secondly it was news of Dubai’s proposal to delay debt repayment that rattled the equity markets and lead to rise in Dollar Index. Dubai world, the government investment company burdened by $59 billion of liabilities has asked all creditors for a “standstill” agreement as it negotiates to extend maturities. Dollar index recovered from its fall witnessed on Wednesday and was trading at 75.118 levels. USDINR will be bullish for today riding on surge in dollar index. 46.80 will act as a crucial level for the pair above which pair can touch 47.00 levels.