Indian Rupee perked up on the back of firm Asian stock market, but the near-term outlook remains subdued on economic worries. S&P cut its outlook on India's long-term sovereign credit rating to negative from stable, citing worsening government finances, which could raise firms' overseas borrowing costs and weaken the currency. U.S. Dollar gave up some strength as traders took profits and risk appetite surged on Yen weakness and the largest stock rally in a month. Bernanke put a dampener on speculation US banks may be nationalized. US Consumer Confidence dropped much more than expected to 25 vs. 35.5 forecast. Looking ahead Existing Home Sales forecast at 4.79 vs. 4.74
Technical Outlook:
USDINR chart pattern indicates a small upward correction for the day. With the trading range between 49.65-49.95 levels. With good support seen at 49.57 levels and key resistance at 50.05 levels. Stochastic is seen trending up giving indication of a upward correction but caution required as market is seen at overbought level. currency is expected to have its resistance at previous high level of 49.95.
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