Throughout the week, the Indian rupee traded in the range of 68.8550 and 69.8600 against the US dollar as soaring crude oil prices and a fresh flare up in US-China trade tensions weighed on emerging market currencies. Global markets tumbled after President Donald Trump on Thursday announced that the US will impose an additional 10 per cent tariff on $ 300 billion worth Chinese imports, which Beijing vowed to retaliate. Moreover, Persistent foreign fund outflows and a strengthening greenback also put pressure on the domestic currency.
- The dollar surged against high-yielders overnight, hitting a 10-year high against the Aussie and rising sharply against the Korean won and kiwi.
- On Thursday, the Federal Reserve delivered its first rate cut in over a decade amid weaker growth, but indicated that it was not the start of a new easing cycle.
USDINR showed bullish movements after breakout from trendline acting as resistance on daily charts and closed around its psychological level of 70.0000. Now, sustaining above this mark it may continue positive rally and find resistance near 70.5000. On lower levels 69.0000 is act as support for it.
EURINR gave false breakout on lower levels and showed bullish movements closed around its resistance level. Now, sustaining above immediate resistance of 77.7000 currency pair shows more positive rally and find next resistance near 78.5000. Contrary below 77.0000 level it may drag towards 76.5000.
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