USDINR opened at 77.35 on Friday and the pair traded in the 77.27-77.47 range. Spot USDINR closed at 77.44, gain of 2 ps for USD as against prior close of 77.42. RBI reference rate was fixed at 77.35 on 13/05. May USD/INR closed at 77.46, loss of 11 ps for USD as compared to prior day’s close of 77.57. May Euro/INR closed at 80.62, GBP/INR at 94.69 and Yen/INR at 60.14. USDINR fwd premia was trading at around 3.80% p.a. FX reserves stands at USD 597.73 bn as on 29/4.
| PAIRS | RBI REF RATE (13/05) |
| USDINR | 77.35 |
| EURINR | 80.36 |
| GBPINR | 94.45 |
| JPYINR | 60.09 |
Benchmark Nifty declined 25 points (0.16%) on Friday. DOW climbed 466 points (1.47%).Nikkei climbed 2.64% and Hang Seng climbed 2.67%.
Euro is now at 1.0412, Pound at 1.2264, Yen at 129.21.
Commodities: Gold is now at USD 1810 and WT1Crude at USD 110/Brent at USD 111.
Interest rates: USD 10 Yr yield is at 2.93% and 3 m libor closed at 1.40%. Indian 10 yr benchmark yield closed at 7.31%.
Economic news: ECB board member said that normalization of monetary policy was “necessary and desirable”. But such normalization must be done gradually. He urged not to “over-react” to inflation rising across Europe or risk penalizing economic growth.
Data highlights: – EU industrial production declined -1.8% m/m.
Monday’s calendar: – US NY mfrg index.
| USD/INR | 77.47 | 77.27 | ||
| EUR/USD | 1.0412 | 1.0421 | 1.0351 | |
| GBP/USD | 1.2264 | 1.2267 | 1.2155 | |
| USD/JPY | 129.21 | 129.46 | 128.25 |
Daily Support/Resistance table
| Currency Pairs | Pivot | R1 | R2 | R3 | S1 | S2 | S3 |
| EURO/USD | 1.0394 | 1.0438 | 1.0464 | 1.0367 | 1.0324 | ||
| GBP/USD | 1.2228 | 1.2302 | 1.2340 | 1.2301 | 1.2116 | ||
| USD/JPY | 128.97 | 129.70 | 130.18 | 128.48 | 127.76 | ||
| USD/INR | 77.39 | 77.51 | 77.59 | 77.31 | 77.19 |
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
| Currency Pair | Supports | Resistances | Trend | Remarks |
| EURO/USD | 1.0340 | 1.0470/1.0640 | DN | SIDE>1.0640 |
| GBP/USD | 1.2030 | 1.2410/1.2640 | DN | SIDE>1.2640 |
| USD/JPY | 127.10 | 131.30 | UP | DN<127.10 |
| USD/INR | 77.15/76.98/76.78 | 77.60 | UP | SIDE<76.78 |
| USD/CHF | 0.9870/0.9710 | 1.0140 | UP | SIDE<0.9870 |
Technicals: Spot closed above 200 day major moving averages.20 day moving average is at 76.67. 50 day moving average is at 76.32.200 day moving average is at 75. Daily MACD is in buy zone, implying bottom at 76. Important supports are at 77.15/76.95 and important resistance is at 77.60/78/78.25. Spot closed above its average level of the day.
Intraday supports and resistances for May contract are:
PP: 77.46, S1:77.33, S2:77.21, R1:77.58, R2:77.71.
Hedging strategy: Hedging decisions be taken according to comfort and accounting rates.
However on directional basis, suggest the following:
USDINR Exports can be partially hedged at 77.50+ levels.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is below major moving averages. Major resistance is at 1.0640. Next major support is at 1.0350. Daily MACD is in sell zone, implying an important top at 1.1185. Weekly MACD is in sell zone, implying important top at 1.1498.
GBP/USD: The pair is below all moving averages. Daily MACD is in sell zone, implying important top at 1.33 and weekly MACD is in sell zone, implying important top at 1.3730. Important support is at 1.2030. Important resistance is at 1.2410/1.2640.
USD/YEN: The pair is above major moving averages. Daily MACD is in sell zone, implying important top at 131.30. Important support is at 127.10.
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