Currency Outlook, Indian Rupee In a Tight Band

Rupee remained in an extremely narrow range on Friday, July 22, 2011 despite a strong opening early today by around 14 paise at Rs. 44.37 against the US dollar. Strength in the euro as well as domestic shares that held on to gains kept rupee shored up, however, the underlying mood in the domestic currency remained cautious before the Reserve Bank of Indias policy review slated on Tuesday, where the central bank is widely expected to announce a 25 basis point rise in key lending rate. The Indian unit registered an intra day low of 44.41 and ended at the days high of 44.36, up around 15 paise or 0.34% as compared to previous close at 44.51.

Currency Outlook : USD vs EUR

The Euro declined against the U.S. dollar on Monday, dropping to a three-day low as concerns over the region’s debt crisis pressured the single currency lower.

EUR/USD
Current Rate : 1.4052
Short Term Trend : DOWN
Support : 1.3980-1.3870
Resistance : 1.4150-1.4285

Intraday Currency Outlook For 19-July : US Dollar

The U.S. dollar advanced against most of its major counterparts on Monday, while the euro came under broad selling pressure after Spanish and Italian bond yields surged to fresh euro-lifetime highs, adding to fears over the region’s debt crisis.

US Dollar/INR (July)
Current Rate : 44.65
Short Term Trend : UP
Support : 44.45-44.20
Resistance : 44.75-45.20

Currency Outlook For Today 18-July

The US dollar erased its gains today and posted the biggest weekly decline in three months after Standard & Poor’s warned that it may cut the US credit rating as the US lawmakers can’t agree on the nation’s debt ceiling.

The Euro has borne up relatively well against the dollar due to parallel concerns over the United States' own debt troubles and hints further monetary easing could yet be on the cards there, potentially flooding global markets with dollars.

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