The Indian rupee held close to three-week lows with weaker Asian shares weighing on sentiment, but the dollar's losses versus major currencies helped prevent a further sharp drop. U.S. Dollar enjoyed gains all day as the Euro led the majors lower. Oil came off 2% along with Gold and Copper. Stocks were also hit hard by profit taking and helped stoke safe haven buying. TIC long term purchases fell to $11Bn in April. Crude Oil closed down $1.43 to finish the day at $70.61.. Looking ahead, May Housing Starts are forecast at 0.49M vs. 0.45M previously.
Technical View:
USDINR chart pattern shows a bullish note for the day. With the trading range between 47.55-48.00 levels for the day. Good support is seen at 47.42 levels and key resistance is seen at 48.10 levels. Currency is expected to have a downward correction and test moving average level as support. Stochastic is trending down from overbought areas hinting towards small downside correction.
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