Currency Report for Exporters and Importers : 19th September 2018

Insignia Consultants

New Delhi

Wednesday, September 19, 2018

TIME: 9:27am IST           

DAILY FOREX REPORT FOR EXPORTERS AND IMPORTERS

(inter-bank prices below)

Muted Chinese response to Trump and his new trade tariff has sent positive message to global financial markets. Direction of the Japanese yen against the US dollar is a bit confusing. It should have fallen against the US dollar. Bank of Japan meeting later in the week and next week’s FOMC will give trend of the Yen. Euro and Pound are bullish against the US dollar a deal on Brexit is more or less confirmed. Focus of the markets will be a fundamentals after a very long time. Just remember that all the positive vibes of US economy has already been factored in by the markets.

India

Month end and quarter end demand (if any) will prevent sharp fall for usd/inr. I expect profit booking on short usd/inr positions and subsequent new shorts getting added before the FOMC meet on 26^th September. Tomorrow’s Mumbai and forex markets are closed. Spot value date shifts to Monday (22^nd September). There will be an inverse correlation between rupee and stock indices. The government is trying to prevent the pace of decline and not the decline. News will be the key.

US dollar-Indian Rupee (usd/inr CMP 72.7550):

One Support: 72.6175
One Resistance: 73.0850

o      Key resistance is at 73.1300. There will be another wave of rise over 73.1300 to 73.5250.

o      Usd/inr can fall to 72.3550 in case 73.1300 is not broken by Friday.

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.