Weekly Forex Market Update

Market Outlook

The rupee Friday fell 47 paise to trade at 69.9850 against the US dollar in early trade following foreign fund outflows and rising crude prices after Iran said it had shot down a US military drone. Subdued sentiments in domestic equity markets also influenced the trading pattern in the currency market. However, a weak dollar against major currencies overseas restricted the rupee’s fall. On flip side, the dollar kept losing ground to other major currencies on Friday in Asia after the U.S. Federal Reserve signaled an interest rates cut to prop up economic growth.

Fundamental News

  • The dollar fell to a 14-month low overnight against the yen as carry trades were unwound in the wake of Iran’s shooting down of a U.S. Navy drone.
  • The euro traded higher despite the failure of EU leaders to decide on a new president for its powerful executive branch, the European Commission, at their latest summit.

USDINR unable to sustain on higher levels found strong resistance of 70.0000 mark and closed with negative note. Now, closing above this mark it may shows bullish movements towards next resistance zone of 70.5000. Contrary on lower levels find support around 69.0000.

EURINR after correction found stong support around 78.0000 showed bullish movements and closed with positive bias. Now, immediate resistance for the currency pair is seen around 79.0000 sustaining above this mark it may shows more bullish movements towards 80.0000.

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