The Rupee depreciated against the dollar in early trade due to importers' demand for the US currency. Expectations of more capital inflows by foreign funds as stock markets may extend upward march, also checked fall in Indian rupee to some extent. U.S. Dollar was put squarely on the back foot as the largest currency pair EUR/USD broke through the topside of the recent range at 1.4200. Good news on the CIT front and a broad rally in the DOW let risk appetite surge and become the main theme of the trading day. Oil, GBP, CAD and AUD all made major gains. Looking ahead, Federal Reserve Chief Ben Bernanke to testify on the Semi-Annual Monetary Policy Report before the House Financial Services Committee in what could be a significant market moving event.
Technical Outlook:
USDINR charts seen on a profit taking note. Stochastic has given a turn from the oversold areas but crossover can only confirm the outlook .Currency is expected to take resistance at moving average level of 48.56/48.62 levels .Good support is seen at 48.09 and break below will take support at 47.95/47.75 levels.
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