Rupee weakened in opening deals as losses in Asian shares raised concerns foreigners may withdraw funds from the local market, with losses in other Asian units adding to the woes. U.S. Dollar took advantage of heavy profit taking in Asian Stocks and weakness in US stocks to finish stronger against the Euro and high yielding currencies. US Retail Sales were the major drag on the market falling -1.1% in March vs. a 0.3% rise forecast. PPI fell -1.2% in March and sparked concerns of deflation in the worlds largest economy. Looking ahead, March Core CPI forecast at 0.1% vs. 0.2% previously. Also released, April Industrial Output forecast at -1% vs. -15% previously.
Technical outlook:
USDINR charts opened on a bullish note and is expected to be on a bull run with good resistance seen at 50.20 levels and support at 49.85.Trading range for the day is expected to be between 49.88-50.1550.Currency is trading on the moving averages and stochastic is also seen trending up hinting towards a bull run but chart pattern shows that currency would test the open of previous day (49.88) before giving a bull run
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