On Friday, the Indian rupee appreciated by 7 paise to open at 70.000 against the US dollar, driven by positive opening in domestic equities and weakening of the greenback in overseas markets. Moreover, easing crude prices, sustained foreign fund inflows and selling of the American currency by exporters supported the rupee. On the other hand, the U.S. economy is firing on all cylinders, despite the nasty trade war with China, which has escalated in recent weeks. U.S. officials, including President Trump, had announced that substantial progress had been made.
- Trump’s unexpected decision to slap a levy on Mexican imports is casting renewed doubt over the prospect of a U.S.-China trade deal.
- The U.S. president has threatened to levy taxes on auto imports, and only this week said he doesn’t see a deal with China happening soon.
USDINR last week broke its psychological level of 70.0000 but unable to sustain above this mark and closed below it. If sustain on lower levels then shows correction towards its support zone of 69.0000 below this level it is more bearish. On higher levels 70.7000 is seen as resistance for it.
EURINR last week unable to sustain on higher levels showed correction and closed around its support. Currency pair shows bearish movements if sustain below support of 77.5000 and find next support around 76.8000. If continue positive movements then 78.7000 is act as strong resistance for it.
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