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22 Oct 2009
The Indian rupee fell to its lowest in more than a week on Wednesday

 

USDINR                                                                CMP: 46.50

 

The Indian rupee fell to its lowest in more than a week on Wednesday, as a fall in local share prices turned sentiment cautious about the direction of fund flows and some banks bought dollars cheaper to arbitrage offshore.    The partially convertible rupee <INR=IN> ended at 46.485/495 per dollar, off an early low of 46.52, its weakest since Oct. 12 and 0.8 percent below its Tuesday's close of 46.11/12.

 

 Recommendation

 

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

 

USDJPY                                                               CMP: 91.05

 

The dollar slipped a tad against the yen in Asia Wednesday due to profit-taking, but it may rise briefly later in the day as Japanese fund players are expected to launch their buying for new trust funds. The Dollar Index, a trade-weighted basket of six currencies, was at 75.52 from 75.54 overnight. New trust funds, commonly known as "Toshin" in the currency market, are often opened by Japan's institutional players toward the end of a month, and talks about the issue sometimes become a market-moving factor

 

Recommendation

 

Sell in the range of 91.30-91.40 stop loss above 91.80 Target 90.60-90.30

 

EURUSD                                                             CMP: 1.4990

 

The dollar traded near a 14-month low versus euro as evidence of a global economic recovery damped demand for the U.S. currency as a safe haven. The euro rose before reports forecast to show improvements in an index of U.S. leading indicators and German business confidence. The dollar traded at $1.5014 per euro from $1.5016 in New York yesterday when it touched $1.5046, the weakest level since August 2008.

  

Recommendation

 

Sell in the range of 1.5050-1.5060 stop loss above 1.5120 Target 1.4950-1.4910

 

GBPUSD                                                            CMP: 1.6600

 

Sterling hit a one-month high against the dollar on Wednesday, adding to broad gains after traders took Bank of England meeting minutes to suggest that an extension of quantitative easing next month was less likely. Sterling rallied 1.3 percent on the day to $1.6622, its strongest since mid-September. The pound rose across the board, keeping the euro EURGBP near a one-month low of 89.98 pence hit earlier in the day.

 

Recommendation

 

Sell in the range of 1.6650-1.6660 stop loss above 1.6750 Target 1.6550-1.6500

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