The Indian rupee fell to a three-week low on Wednesday, pressured by shares falling for the third straight day and customary month-end dollar demand from refiners. The partially convertible rupee ended at 47.34/35 per dollar, off a low of 47.38, its weakest since Oct. 5 and almost 1 percent weaker than its previous close of 46.88/90. Indian shares extended losses for the third straight day, and eased 0.4 percent to their lowest close in over six weeks.

Recommendation

Buy in the range of 47.40-47.30 stop loss below 47.00 Target 47.90-48.20

The yen gained broadly on Wednesday as deepening share losses prompted traders to dump currencies perceived to be higher risk for the low-yielding Japanese currency. The dollar fell 1 percent on the day to 90.93 yen, its lowest level in roughly a week, while the euro hit a two-week low of 134.52 yen. European shares fell more than 1 percent on the day, pulled lower by steep losses in banking sector shares.

Recommendation

Sell in the range of 91.60-91.70 stop loss above 92.30 Target 91.00-90.60

The euro extended losses against the dollar on Wednesday after data showed U.S. new home sales for September fell. The report showed sales of newly-built home declined unexpectedly last month, falling 3.6 percent to 402,000 annual paces. The euro EUR= fell to $1.4775 against the dollar from $1.4791 before the data. It was last at $1.4779, down 0.2 percent on the day.

Recommendation

Sell in the range of 1.4750-1.4760 stop loss above 1.4810 Target 1.4650-1.4610