Forex Tips: Currency Trend Outlook

• Euro fell to a 10-month low versus sterling as worries that a long-lasting solution to the euro zone`s debt crisis was out of reach.

• Rupee trading volumes are expected to drop by 25 to 30% after RBI reduced trading limits of banks and companies.

• The yuan fell slightly against the dollar in see-saw trade on Tuesday after the People`s Bank of China set a weaker mid-point.

• In the currency futures market, the USD/INR December open interest was down by 8.4%. The January contract witnessed an increase in open interest by 5.9%

• The US dollar is expected to attract some selling pressure on rallies against the INR. Traders are adviced to utilise the highs in the USD/INR December contract and sell below 53.16 for the target of 52.97/52.83 and a stop loss 53.25.