Insignia
Consultants
New Delhi
Tuesday,
August 28, 2018
TIME:
9:08 am IST
DAILY FOREX REPORT FOR
EXPORTERS AND IMPORTERS
(inter-bank prices below)
Trend for the US dollar is
bearish. Tomorrow’s US second quarter GDP numbers will be the key. US-Mexico trade
deal may not necessary be bullish for the greenback. It is just a wait and
watch for the US dollar despite bearish technical for the US dollar Index. A
US-Canada trade deal (if any as there is speculation) can result in more losses
for the US dollar. Obviously emerging markets will heave sign of relief as
their currencies gain. Emerging markets wants their currencies to stop the
depreciating trend. I see US dollar short positions starting to increase as
opposed to net longs currently.
India
FDI grows 23% to $12.75 bn
during Apr-June. Foreign direct investment in India grew by 23 per cent to
$12.75 billion during the April-June quarter of 2018-19. The foreign fund
inflows in April-June 2017-18 stood at $10.4 billion. Positive inflows are
there. There are no bad news for the rupee at the moment. The only risk to
India is competition from emerging market peers. Emerging markets like
Indonesia, Philippines among others have been most hit in stocks as well as
currencies. Indian stock markets are rising as it is still the safest bet.
If there is any indication
that Indonesia and other emerging markets have formed a long term bottom, then
these nations will get more foreign inflows than India. Chinese opening their
financial sector to global investors will also give a big competition to India.
Chinese financial sector is highly undervalued as compared to India. The only
difference between India and Chinese financial sector is that regulation and
safe guards in India is at par with global standards which is not the case as
yet with Chinese.
Volatility will rise till Friday
for the rupee against the global currencies.
One Support: 1.1602
One Resistance: 1.1791
o Euro/usd can rise to 1.1791 and
1.1898 by Thursday as long as it trades over 1.1602.
o Trend is bullish.
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Disclaimer: Any opinions as to the commentary, market
information, and future direction of prices of specific currencies, crypto
currency, metals and commodities reflect the views of the individual analyst,
In no event shall Insignia Consultants or its employees have any liability for
any losses incurred in connection with any decision made, action or inaction
taken by any party in reliance upon the information provided in this material;
or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed
as, investment advice. Prepared by Chintan Karnani
NOTES TO THE ABOVE
REPORT
PLEASE NOTE: HOLDS MEANS HOLDS ON
DAILY CLOSING BASIS
ALL PRICES ARE IN INDIAN RUPEE UNLESS
OTHERWISE SPECIFIED
Indian Standard Time (IST): +5:30 GMT
Current Market Price (CMP)
All foreign exchange prices are for
inter-bank rates.
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