USD/INR DAILY

Panic gripped the markets world over after news of postpontment of debt by the Dubai government. Dollar rose to make a high of Rs. 47.16/usd while Nifty fell by 200 points from day’s opening as a possible default threatened to start a second round of world wide recession. However as the day progressed markets bounced back from the lows with Nifty closing 63 points down at 4941 points while USDINR closed at Rs.46.68/USD. Dollar index also felt the heat with benchmark rising to 75.57 levels from a low of 74.22 levels witnessed two days back. The news that rattled the world markets was Dubai World, the government investment company burdened by $59 billion of liabilities, will ask all creditors for a “standstill” agreement as it negotiates to extend debt maturities. Although it is expected that its other oil rich neighbors will come to its rescue, sentiments seem to have been affected negatively for short period of time. In India although the equity markets were spontaneous in following the line of global asset classes, bond yields remained unaffected as 10 year bench mark yield quoted at 7.18% unchanged from previous day. Today quarterly GDP data of India will be released. Markets have discounted a rise of 6.3% rise in GDP. Anything above that will lead to fall in USDINR. For day we expect a gap down opening with 46.35 level acting as a crucial support for the pair.