Date- September 6, 2023
Place- New Delhi, India
The US Dollar remained robust in the Indian currency market, opening at 83.1250 and reaching a high of 83.2375. Despite a slight intraday dip, the Dollar’s strength prevailed. This strength can be attributed to positive US economic data, which has increased the likelihood of more interest rate hikes. The Indian Rupee, facing headwinds from declining Asian currencies and expectations of robust demand for the Dollar due to resilient US yields, touched a new record low against the US Dollar. It opened at 83.14, hit an intraday low of 83.11, and ultimately ended at an all-time closing low of 83.21 against the Dollar.
The USD/INR may find resistance at 83.22, with further resistance at 83.29. On the downside, it found support at 83.00 and 82.80, providing important levels for traders to monitor.
The British Pound continued to face downward pressure, opening at 103.9650 and hitting a high of 104.0325. Concerns arose as a Bank of England member, Swati Dhingra, expressed worries that interest rates had reached levels that could potentially harm the UK economy if raised further. Additionally, Britain’s residential property market faced challenges, with home prices falling at the fastest pace since 2009. The GBP/INR pair remained under pressure, falling to a three-month low. It was quoted at 103.90 on the NSE, down half a percent on the day.
GBP/INR encountered resistance at 104.00 and 104.30, while finding support around 103.50 and 103.20.
The Euro struggled to gain momentum, opening at 89.2450 and touching a high of 89.2850. It remained near a three-month low due to the strength of the US Dollar, which was hovering at a six-month high. The Dollar’s strength was driven by expectations of prolonged higher interest rates. Additionally, weak German data added to the Euro’s challenges, as Germany’s Industrial Production contracted more than expected. EUR/INR September futures fell below the previous close of 89.48, reaching a low of 89.26 during the day and closing at 89.30, down 0.20% on the day.
EUR/INR witnessed support at 89.00 and 88.80, which could act as stabilizing levels. Resistance, on the other hand, was observed at 89.50 and 89.70, serving as potential barriers to any upward movements.
The Japanese Yen opened at 56.3500 and reached a high of 56.5075. Despite a slightly stronger performance, it remained vulnerable. The Indian currency market saw fluctuations in JPY/INR as support and resistance levels were tested. The pair was quoted at 0.5643 in the spot market.
Support levels for JPY/INR were identified at 56.50 and 56.20, offering potential buffers against downward pressure. Resistance levels stood at 57.00 and 57.30, indicating zones where upward momentum could face challenges.
CurrencyVeda provides information purely for educational purposes. We are not financial advisors or brokers. The content we provide should not be taken as financial advice or a recommendation to buy or sell any sort of investment or security. Always perform your own due diligence and consult with a licensed professional before making any investment decision