USD/INR Daily

Dollar continued to be sideways even as the range of the pair continues become narrower. USD/INR opened the day at 46.85 and closed at 46.86 levels moving in a 10 paisa range. This narrow range was witnessed despite the fact that Dollar index breached the crucial 78 levels and traded at 78.09 levels. Dollar rose against the Euro and the Yen as evidence that America's economy is gaining momentum encouraged speculation that Federal Reserve will start to withdraw its stimulus. Indian equity markets fell yesterday but revival of Dow Jones which closed 85 points positive is expected to have influence on Nifty as well. The inflation concern continued to affect bond yields which rose to 7.61% from 7.56% the previous day. As inflation numbers rise all hopes are set on Rabi crops which have shown encouraging growth after devastating Kharif production this year. Looking at USDINR we fell the pair will be range‐bound for coming 1‐2 weeks time period. On upside 47.05 will act as a resistance while on downside 46.60 will act as a critical support.