The Indian rupee fell on Friday, snapping three sessions of gains, dragged by the euro’s weakness, but local currency may gain if the government can push through more reforms in parliament next week. The government expectedly won the vote on foreign investment in retail in the upper house of parliament on Friday. Bolstered by the win, the govt said it will bring more financial sector reform bills next week in parliament. Rupee may further gain if the government pushes through reform proposals like allowing foreign direct investment in the pension sector and raising the limit for insurance. However, the twin deficits, on the fiscal and current account, may continue to be a drag.
Domestic Forex Updates:
India’s Forex reserves down by $471.3 million.
Rupee falls on euro weakness; fate of future reforms key.
Sterling climbs as euro hit by gloomy growth forecasts.
USDINR tested the 38.2% retracement and reversed from the same level towards 23.6% retracement of 54.9200. If it is able to sustain above the crucial level of 55.0000 then next resistance is seen around 55.4000. While any fall below 54.2500 will again drag it in the weak zone where 53.7500 will act as major support for it.
EURINR on its weekly charts after its reversal pattern formation last week traded on lower side and closed below the trend line acting as strong support for it. Strong support is seen around 70.1000 below which 69.6000 is seen as next support. On higher side, 70.8200 is seen as immediate resistance above which 71.5000 is seen as next important resistance.
Global Forex Updates:
Dollar Rises After November Job Gains Top Forecast; Euro Falls.
Euro Falls First Time in 4 Weeks as ECB Lowers Economic Outlook.
Majority of ECB Governing Council Said to Back Rate Cut.