Weekly Currency News

Market Outlook

On Friday, the Indian Rupee appreciated by 14 paise to open at 70.8025 and throughout the week hovered in the range of 70.0050 and 71.3050 against the US dollar on account of dollar’s weakness against other currencies overseas and a strong domestic equity market. Moreover, easing in crude oil prices, sustained foreign fund inflows and increased selling of American currency by exporters and banks bolstered the rupee sentiments. On the flip side, dollar was flat following reports that the Federal Reserve is considering adopting a wait-and-see approach to rate hikes.

Fundamental News

  • Yuan traded lower as the People’s Bank of China (PBOC) set the yuan reference rate at 6.8664 vs the previous day’s fix of 6.8599.
  • The Australian dollar hasn’t been this undervalued against the greenback since the depths of the global financial crisis, with fears over a potential escalation in the US-China trade conflict largely to blame.

Global Updates

  • Greece Unemployment Rate (MoM) dipped from previous 18.9% to 18.6% in September.
  • India Reverse Repo Rate meets forecasts 6.25%.
  • European Monetary Union Retail Sales (YoY) below expectations 2.1% in October: Actual 1.7%.
  • Indonesia Inflation (MoM) above forecasts 0.17% in November: Actual 0.27%.
  • Greece Gross Domestic Product n.s.a (YoY) up to 2.2% in 3Q from previous 1.8%.
  • Austria Trade Balance up to €-214M in September from previous €-587M.

USDINR last week showed positive movements from lower levels and closed around its resistance zone. If able to sustain above 71.0000 mark in upcoming week then continue bullish movements towards its next resistance level of 71.7000. On lower levels it has strong support of 69.7000.

EURINR found support on lower levels and showed bullish movements last week, closed around trendline acting as strong resistance on daily charts. If continue to trades above trendline then positive breakout is seen in particular currency pair and may find resistance around 82.0000.

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