FOREX TRADING TIPS IN INDIA: Rupee strengthens by 12 paise vs dollar

The Indian rupee resumed trade after a long break. It opened at 66.10/$ higher by 12 paise in early trade on Monday. RBI’s involvement in the Forex markets has provided lot of stability to the Indian rupee. On the domestic front, India’s current account widened to 1.6% of GDP during the second quarter of the FY 2015‐16, when compared with the reading of 1.2% during the prior quarter. However on yoy basis, the deficit has narrowed from the 2.2% during the same quarter last year.

On global macroeconomic front, US Q3 GDP growth was downwardly revised to 2%, when compared with the earlier estimate of 2.1%. Consumer spending grew at a 3%, in line with the prior projections. Healthy consumer spending is attributed to strengthening employment and housing markets. Low energy prices and ensuing rise in personal savings also boosted spending.

On Wednesday, Indian rupee ended at 66.21/$, higher by 11 paise. The currency touched a high and low of 66.07 and 66.10 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.20 and for Euro stood at 72.41 on December 23, 2015. While, the RBI’s reference rate for the Yen stood at 54.74, the reference rate for the Great Britain Pound (GBP) stood at 98.2967.  

BUY GBPINR ABOVE ABOVE 98.71 TGS 98.81-98.91-99.01 STOPLOSS 98.51 

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Rupee opens higher at 66.31/$

Indian rupee extended its gain for the sixth consecutive session and opened at 66.31/$ higher by 4 paise in early trade on Tuesday as against the previous close of 66.39/$.

On Monday, Indian rupee was up against the greenback, helped by sharp fall in oil prices and general softness in US dollar against the basket of currencies. RBI’s intervention in the Forex markets has also provided lot of stability to the Indian rupee.

 RBI has earlier announced plans of intervening in the exchange traded currency derivative markets as well in order to shield the currency from the volatility and repercussions of US Fed rate hike.

BUY GBPINR.DEC ABOVE 98.75 TGS 98.85-99.05-100.20 STOPLOSS 98.55

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Indian Currency Update: Rupee opens higher; up 9 paise against dollar

The Indian rupee opened higher by 9 paise at 67.03/$ in early trade on Tuesday, as against the previous close of 67.09/$. On the domestic front, India's retail inflation during November spiked to 14‐month high, fuelled by rise in food prices. In this respect, CPI reading registered a rise of 5.41% against the October number of 5.4%. Meanwhile, wholesale inflation declined by 1.99% during November, 13th consecutive monthly contraction. However, wholesale food prices gained 5.2% on yoy basis, a steep rise when compared with October's reading of 2.44%.

FOREX CALL : BUY GBPINR ABOVE ABOVE 101.75 TGS 101.85-101.95-102.05 STOPLOSS 101.55 

On the global front, Global cues are mixed. US market notched some gains.Japanese Nikkei is down 0.8%  while China's Shanghai Composite and South Korea's Kospi have dropped marginally. Hong Kong's Hang Seng is trading flat for the moment. On the global front, investors will prefer to remain on the sidelines well ahead of the outcome of US FOMC meeting. Although 25 basis points hike is a done deal, the focus will lie on the language of the policy statement. Fed has an onerous task of striking a balance by hiking rates as well as pacifying the markets by reiterating that the process of policy normalization will be gradual and gentle in order to avert the US economy from tilting into recession.

On Monday, Indian rupee ended at 67.09/$, lower by 21 paise. The currency touched a high and low of 67.13 and 67.22 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.99 and for Euro stood at 73.46 on December 14, 2015. While, the RBI’s reference rate for the Yen stood at 55.29, the reference rate for the Great Britain Pound (GBP) stood at 101.7840.

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