On Friday, continuing its recovery, the rupee strengthened by 22 paise to opened at 73.9975 and hovered in range of 74.6875-73.7125 against the US dollar after global crude prices eased. Besides, strong domestic bourses, selling the US currency by exporters and banks and the greenback’s weakness against some currencies overseas bolstered the recovery in the domestic currency. The dollar crept against major Asian peers, reflecting investors’ confidence in the U.S. economy, despite criticism by President Donald Trump of the Federal Reserve and a sell-off in U.S. equities.
- Euro hit fresh weekly high on the back of dollar selling and a positive tone in minutes of the last European Central Bank (ECB) meeting.
- Australian dollar recovering from Monday’s two-year low supported by promising news out of China, its biggest trade partner.
- Sterling was touch higher after reports that Britain and the EU were making progress towards a Brexit deal.
- German Industrial Production in August 2018: -0.3% seasonally adjusted on the previous month.
- The Singapore dollar dipped after Singapore’s central bank tightened monetary policy for the second time this year
- The yuan traded slightly higher following the release of the data as PBOC set the yuan reference rate at 6.9120 on Friday vs the previous day’s fix of 6.9098.
- Consumer prices in Germany were 2.3% higher in September 2018 compared with September 2017.
USDINR continued the positive move in the first half of the week but resisted at highs and strongly reverted in the last two sessions to close in red zone against the previous weekly close. If the pair sustsains above 74.2000 then it may again gain the positive momentum whereas 73.1000 is seen as strong support for the coming week.
EURINR headed towards the psychological resistance of 86.0000 in last week but strongly resisted at these levels and fell strongly in the last session of the week. Bears can become active if the currency pair sustains below the mark of 85.0000 and may fall towards 84.4000. On higher side, 86.0000 might continue to act as stiff resistance.
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