Dollar/Rupees

The Fall In USD/INR countinued for the fourth consecutive session as breach of crucial levels lead to triggering of stop losses leading to long liquidations . USDINR Jan Futures opened the day at 45.87 levels and closed at 45.73 levels after making a low of 45.63 levels. Yesterday's weekly inflation data provided some relief with Primary articles WPI falling by more than 1% from previous figures to quote at 14.39% from 15.49%. However bond yields did not cool down as yields on 10 year benchmark bonds rose to touch previous high of 7.66% from 7.64% the day before. Equity markets fell by 18 points to close at 5263 levels. Another key factor that affected the markets was news of monetary tightening in China as Chinese Central Banks poised to roll back its monetary stimulus to reduce danger of asset bubble inflation after a record surge in credit. Dollar index continued to be range bound with benchmark quoting at 78.02 levels. Overall for today 45.91 will act as a key resistance while 45.50 will act as a critical support of currency pair.