On Friday, the Indian rupee opened weak by 10 paise at 71.3200 and throughout the week it hovered in the range of 71.4700 and 70.3650 against the US dollar following sustained demand for the greenback from importers amid foreign fund outflow and rising global crude prices. On the other hand, dollar was edging higher against major Asian peers after weak Chinese inflation data overnight reinforced concerns about global growth. Moreover, Traders are waiting for results of a meeting on Friday between the Trump administration’s top two negotiators and Xi Jinping in Beijing.
- The yuan fell against the U.S. dollar after data showed China’s January Consumer Price Index and Producer Price Index both missed expectations.
- Euro fell after ECB board member Benoit Coeure said the central bank was warming up to the idea of issuing new longer-term refinancing operations amid slowing euro area economic growth.
USDINR showed weak trend in the initial part of the week and dragged near support levels but soon gained momentum in the last two sessionsof the week. If it is able to sustain above 71.6000 then it may move towards the next psychological resistance of 72.0000 whereas 70.5000 may continue to act as major support for the currency pair.
EURINR last week dragged surpassing the immediate support levels and closed in negative terrain. The currency pair traded below the important support levels of 81.0000 and reached towards 80.0000 which is again seen as crucial support this week also. On higher side, any closing above 81.2000 can confirm the bullishness.
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