USD/INR DAILY

With continuation of bullish trend in equity markets Dollar fell against the rupee as the pair made a low of 46 28 levels yesterday eventually closing the day at 46.37 a fall of 13 points from opening. Positive trade data and renewed investor sentiment pulled Nifty up by 89 points to close at 5122 With a thrust provided by manufacturing sector, India’s exports declined by least in past 10 months. Exports dropped by 6.6% in October from a year earlier while imports declined by 15.0% in October from a fall of 31.2% previously. This was in line with a global recovery being witnessed with China also reporting a recovery in manufacturing growth  After falling for nearly a 2 weeks, bond yields recovered as benchmark 10 year yields on 6.9% note due July 2019 touched 7.33%. Rise in bond yields the government auction of Rs.100 billion (Rs.10000 Cr.) of debt later this week. Pressure on yields was also felt as Australian Central Bank raised the benchmark rate for the record third month. In intraday 46.20 will be a critical support for the pair. Below this one can expect USDINR to touch 46.00 levels.