Currency Report for Exporters and Importers :4th September 2018

Insignia Consultants

New Delhi

Tuesday, September 04, 2018

TIME: 9:05 am IST          

DAILY FOREX REPORT FOR EXPORTERS AND IMPORTERS

(inter-bank prices below)

US dollar has risen against the emerging market currencies on safe haven demand. Strong US economic fundamentals is driving more investors to the US dollar. Pound fell on Brexit fears. Euro and Japanese yen are steady against the US dollar. US jobs numbers on Thursday and Friday will set the tone of currency markets till FOMC meet on 26^th September. Just remember that September interest rate hike has been discounted by the markets. Trump and trade wars with China and rest of the world will result in very high volatility for the currency markets. Japanese yen will break free from 109.60-112.60 wider trading range and form a new range anytime soon.

India

Global investors have been pouring in record amounts in Indian stock markets and Indian bond markets since June. Weakness in rupee is there due to emerging market currency rout. Half yearly demand from corporates towards loans and advances will be the key for the rupee price direction in September month. The more the rise, the more will be the hedging demand by Indian corporates. RBI intervention (if any) will be the key.

Euro/Indian Rupee (Euro/inr CMP 82.6900):
One Support: 82.3025
One Resistance: 82.9350

o      There will be another wave of sell off below 82.3025 to 81.8875 and 81.1250.

o      Euro/inr needs to trade over 82.9175 to be in bullish zone and rise further.

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.