The Rupee rose in early trade but is expected to trade in a range as the market awaiting the stock market movement for further cues. U.S. Dollar stayed range bound for most of the day but ended on a weak footing as stocks ended at month highs. Construction stocks soared as February Housing Stocks rallied 22% to 583K vs. 450K forecast. PPI (Feb) gained 0.2% vs. 0.1% forecast. Oil found ongoing support as it trades close to the $50 a barrel level. Looking ahead for CPI (Feb) are forecast to rise 0.4%. Q4 Current Account is forecast at -137Bn vs. -174Bn previously. Also the FOMC meet today and are expected to remain on hold although the statement may contain clues as to further stimulus plans.
Technical Outlook:
USDINR chart pattern shows the movement in a narrow band with the trading range between 51.17-51.50 levels for the day. With Good support seen at 51.15 levels and key resistance is seen at 51.60.Stochastic is seen trending down and the currency is also trading below the moving averages confirming a downward correction.
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