The Indian rupee fell to a two week low on Thursday, as falling share prices raised concerns whether strong inflows seen so far in 2009 could be sustained in the coming weeks, while the dollar’s rise overseas also dampened sentiment. The partly convertible rupee ended at 46.7350/7450 per dollar; off a low of 46.82 it’s weakest since Oct 7 2009 and about 0.5 percent below its previous close of 46.485/495.

 Recommendation

Sell in the range of 46.80-46.90 stop loss above 47.10 Target 46.00-45.80

The Japanese Yen saw a bearish trading session yesterday, losing ground against most of its currency crosses. The JPY trends will be affected by the rallies of its primary currency pairs today. Traders should keep a close look on the news coming from the U.S. and Europe as these economies will be the deciding factors in the JPY movement today, especially the U.S Unemployment Claims

Recommendation

Buy in the range of 91.30-91.20 stop loss below 90.80 Target 92.20-92.50

The dollar rose on Thursday, rebounding from a 14-month low against the euro, as disappointing corporate earnings dented demand for higher yielding currencies and assets. Investors to take profits on recent gains in the euro and other currencies, which have rallied against the dollar on the view that U.S. interest rates will stay at record lows well into 2010, leaving Asia to lead economic recovery. Low rates make the dollar less attractive to investors than higher-yield currencies more closely correlated with recovery

Recommendation

Buy in the range of 1.4950-1.4930 stop loss below 1.4900 Target 1.5070-1.510