Currency Report for Exporters and Importers : 17th September 2018

Insignia Consultants

New Delhi

Monday, September 17, 2018

TIME: 9:18am IST           

DAILY FOREX REPORT FOR EXPORTERS AND IMPORTERS

(inter-bank prices below)

US dollar gained on Friday on comments by some Federal Reserve officials of a December interest rate hike and more next year. Apart from US housing numbers there is not much US economic data release. Traders will start to take positions for next week’s FOMC meet. Look for signs of profit booking on long US dollar positions. There is speculation that China will ignore Trump’s call for talks on trade tariff and that the deadlock will continue for some more time. Political situation in Eurozone and UK (brexit news) will affect the euro and cable more than trade war and economic news. There will be small periods of sudden one way moves followed by long periods of consolidation in the currency markets.

India

Speculation of reducing or curbing gold imports and other unnecessary imports is there in the Indian media. Completely built units (CBU) are broken into very small parts, shown as parts and imported into India from China and all over the world. Parts attract very less custom duty as compared to a CBU. This way importers are evading high custom duty on CBU and assembling it and selling it as a CBU. There is there is every sector in India. Until and unless the custom officers in India stop this mal practice, all the measures to curb unnecessary imports will be useless. There will be no reduction in cheap imports and Indian small scale and tiny scale manufacturing industry which continue to suffer. The continued changes in GST laws has only increased the miseries of the small scale and tiny call manufacturing units.

Global factors will dictate the rupee more than domestic factors. The government is trying to do a window dressing of the Indian economy. It is just taking up issues which the united opposition is raking up. Real issues to spruce the economy and create more low level jobs are far from being addressed.

US dollar-Indian Rupee (usd/inr CMP 72.5950):

One Support: 72.4625
One Resistance: 72.8625

o      Key intraday resistance is at 72.8625. There will be another wave of rise over 72.8625 to 73.0150 and 73.2575

o      Key support is at 72.4625. Another wave of sell off will be there below 72.4625.

TO VIEW FULL REPORT U NEED TO PAY/SUBSCRIBE

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.