The Indian rupee rose towards the 46 per dollar mark early on Tuesday buoyed by the dollar's fall versus major units, while traders awaited the domestic share market open for cues on foreign fund flows.  The partially convertible rupee was at 46.03/04 per dollar, stronger than its Friday's close of 46.29/30. The market was closed on Monday for a holiday. Last Thursday, the rupee rose to 45.80, its best since Sept. 24, 2008.

Recommendation

Sell in the range of 46.15-46.20 stop loss above 46.50 Target 45.80-45.50

USDJPY                                                               CMP: 90.40

The dollar edged higher against a currency basket on Monday and hit a three-week high against the yen, which suffered as investors took profits on recent sharp gains in a range of currencies against the greenback. The dollar was up 0.6 percent against the yen at 90.09 yen, just shy of an earlier three-week high around 90.30 yen

Recommendation

Sell in the range of 90.60-90.80 stop loss above 91.30 Target 89.80-89.50

The dollar hit a fresh 14-month low against the euro and higher-yielding currencies stayed near multimonth highs on Monday on the view that U.S. interest rates will remain low into next year. Monday the Federal Reserve Bank of New York added downward pressure on the dollar on Monday when it said reverse repo tests did not mean it was ready to use this tool to drain money from the banking system.

Recommendation

Sell in the range of 1.5010-1.5030 stop loss above 1.5070 Target 1.4930-1.4880

GBPUSD                                                            CMP: 1.6370 

Sterling slipped against the euro and dollar on Monday after a Bank of England policymaker said the central bank should continue its programme of quantitative easing because the financial system has yet to fully recover. The pound was down 0.4 percent on the day at $1.6290, after climbing to $1.6401 on Friday, it’s highest in three weeks. Traders shrugged off the Rightmove house price data, which showed asking prices rising 0.2 percent on the year in October the first annual, rise since June 2008. On the month, asking prices rose 2.8 percent, the biggest increase since February 2008 and the largest for a month of October in six years

Recommendation

Buy in the range of 1.6310-1.6290 stop loss below 1.6150 Target 1.6430-1.6580

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