Weekly Currency News

Market Outlook

On Friday, the rupee depreciated by 19 paise to open at 69.2675 and throughout the week hovered in the range of 69.0050 and 69.9825 against the US dollar owing to increased demand for the greenback from importers and banks. Moreover, strengthening of the greenback vis-a-vis other currencies overseas and rising crude oil prices in overseas market added pressure to the domestic unit. However, foreign fund inflows and higher opening in domestic equity market restricted the fall in the local unit.

Fundamental News

  • Euro lifted to two-and-a-half-week high by speculative flows linked to cross-border deal.
  • Turkey’s lira remained under pressure after another drop in the country’s foreign exchange reserves. The fall of over 3% in net reserves in the week to April 5 came on top of a negative reaction to a government plan.

Global Updates

  • China’s CPI up 2.3% y/y in March, vs prev 1.5%, the highest in 5 months, in line with expectations – PPI up 0.4% y/y, vs prev 0.1% growth.
  • Chinese investment in Australia fell 36% in 2018, to A$8.2 billion (US$6.2 billion) from A$13 billion (US$10 billion) in 2017.
  • Australian jobs ads are falling at the fastest pace in over 5 years.
  • UK annual house price growth edges up to 3.2%.
  • Japan’s Wages Unexpectedly Fall in February in Blow to Inflation.

USDINR after positive opening in starting of the week unable to sustain on higher levels showed correction and closed with partial loss. If continue to trades below 69.0000 mark in upcoming week then it may drag towards support zone of 68.3000. On higher levels psychological level of 70.0000 is act as strong resistance for it.

EURINR found support on lower levels and showed positive movements on last trading session of the week closed around its resistance. 79.0000 is act as immediate resistance zone for the currency pair if able to sustain above it then shows bullish movements towards 79.5000. On lower levels 78.0000 is seen as support zone for it.

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