Indian Corrency Tips

• Rupee extended gains in afternoon trade on Wednesday supported by dollars inflows and gains in the domestic equities on improved global risk appetite.

• The rupee slumped to a record low of 54.30 to the dollar last Thursday, down about a fifth from its year-high in July.

• The euro extended gains in Asian trade on Wednesday, on short-covering ahead of the European Central Bank`s first offer of three-year loans.

• Moody`s on Wednesday raised India`s local currency debt rating by one notch to Baa3, matching it with the country`s foreign currency bond grade.

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.

Indian Currency Tips and Updates for Today

• Yesterday, Indian rupee recouped its early losses against the US dollar, powered by some dollar selling from corporate and exporters, although sell-off in domestic shares coupled with gains in global US dollar over Geo-political tension at Korean peninsula kept the Asian currencies including rupee under pressure through the day.

• The USD/INR December open interest was up by 3.6%. The January contract witnessed an increase in open interest by 4.5%.

• Sentiments in Asian currencies and equities were hurt badly on safety demand in early trade after news hit the wires that North Korean leader Kim Jong-Il`s death could spark political instability between North and South Korea.

The US dollar is expected to attract some buying on declines against the INR. Utilise the lows in the USD/INR December contract and buy above 52.86 with target 53.05/53.12 and stop loss 52.77.

Indian Currency Tips Updates

USD/INR is consolidating on charts so traders can use the strategy of buy on lower levels. If this week USD/INR sustains above the level of 52.5100 then above the level of 52.7100 USD/INR can test the level of 52.8500/52.9800/53.1500.

Resistance: 55.1200 - 53.8000
Support: 51.6500 - 50.8200

For the week 49.5000 and 48.0000 will act as major supports and 53.8000 and 54.9000 will act as major resistance in USD/INR.