USDINR opened at 74.10 y’day and the pair traded in the 74.10-74.21 range. Spot USDINR closed at 74.19, loss of 2 ps USD as against prior close of 74.21. RBI reference rate was fixed at 74.14 on 24/08. Aug USD/INR closed at 74.22, loss of 1 ps for USD as compared to prior day’s close of 74.23. Aug Euro/INR closed at 87.19, GBP/INR at 101.84 and Yen/INR at 67.67. USDINR fwd premia was trading at around 4.25% p.a.
| PAIRS | RBI REF RATE (24/08) |
| USDINR | 74.14 |
| EURINR | 87.07 |
| GBPINR | 101.88 |
| JPYINR | 67.51 |
In August, till date,, FII’S have net bought Rs 7558 cr in Equity segment and have net bought Rs 646 cr of debt. In this financial year, FII’S have net bought Rs 543 Cr worth of Indian Equities and have sold Rs 4163 Cr worth of Indian debt. In 2020-21 financial Year, FII’S nett bought Rs 2,74,203 Cr of Equities and have sold Rs 42820 Cr in debt.
Benchmark Nifty climbed 0.28% y’day. DOW climbed 30 points (0.09%).Nikkei was up 0.87% and Hang seng climbed 2.46% y’day.
Euro is now at 1.1740, Pound at 1.3719, Yen at 109.81.
Commodities: Gold is now at USD 1797 and WT1Crude at USD 67.50/Brent at USD 70.20.
Interest rates: USD 10 Yr yield is at 1.26% and 3 m libor closed at 0.12%. Indian 10 yr benchmark yield closed at 6.25%.
Economic news: Germany GDP growth was finalized at 1.6% qoq in Q2, revised up from 1.5% qoq. Indian rating agency ICRA has noted that there is vast improvement in many high frequency indicators in industrial and service sector and growth is slowly getting entrenched.
Data highlights: – US new home sales was reported at 708k.
Wednesday’s calendar: – US durables order.
| USD/INR | 74.31 | 74.21 | ||
| EUR/USD | 1.1740 | 1.1765 | 1.1727 | |
| GBP/USD | 1.3719 | 1.3749 | 1.3694 | |
| USD/JPY | 109.81 | 109.89 | 109.42 |
Daily Support/Resistance table
| Currency Pairs | Pivot | R1 | R2 | R3 | S1 | S2 | S3 |
| EURO/USD | 1.1748 | 1.1769 | 1.1785 | 1.1806 | 1.1731 | 1.1711 | 1.1694 |
| GBP/USD | 1.3723 | 1.3752 | 1.3778 | 1.3806 | 1.3697 | 1.3668 | 1.3643 |
| USD/JPY | 109.68 | 109.94 | 110.15 | 110.42 | 109.47 | 109.21 | 109 |
| USD/INR | 74.16 | 74.23 | 74.27 | 74.11 | 74.05 |
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
| Currency Pair | Supports | Resistances | Trend | Remarks |
| EURO/USD | 1.16/1.1495 | 1.1770/1.1845 | DN | UP>1.1900 |
| GBP/USD | 1.3570 | 1.3750/1.40 | UP | DN<1.3790 |
| USD/JPY | 109.10/108.75 | 110.80/111.60 | UP | DN<108.70 |
| USD/INR | 74.08/73.90 | 74.50 | UP | SIDE<74.24 |
| USD/CHF | 0.91/0.9010 | 0.9240 | UP | DN<0.9010 |
Technicals: Spot closed below 20 and 50 day major moving averages. 20 day moving average is at 74.31. 50 day moving average is at 74.28.200 day moving average is at 73.64. Daily MACD is in sell zone, implying top at 74.95. Important support is at 74.08 and important resistance is at 74.50. Spot closed above its average level of the day.
Intraday supports and resistances for Aug contract are:
PP: 74.20, S1:74.14, S2:74.06, R1:74.28, R2:74.34
Hedging strategy: Hedging decisions be taken according to comfort and accounting rates.
However on directional basis, suggest the following:
USDINR Imports hedging can be done . USD exports can be hedged on rally to 74.60.
Exporters can hedge EURINR receivables exposure at 87.50.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is below 50 and 200 day moving averages. Major resistance is at 1.19. Next major support is at 1.16. Daily MACD is in sell zone, implying an important top at 1.19. Weekly MACD is in sell zone, implying important top at 1.2270.
GBP/USD: The pair is below 50 and 200 day moving averages. Daily MACD is in sell zone, implying important top at 1.3985 and weekly MACD is in sell zone, implying important top at 1.4240. Important support is at 1.3570.Important resistance is at 1.40.
USD/YEN: The pair is between major moving averages. Daily MACD is in sell zone, implying important top at 110.80. Next important resistance is at 110.80/111.60. Important support is at 108.70.
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