22 Aug 2013
USD/INR finds heavy selling above 64.50 after FOMC
FXstreet.com (Barcelona) - The USD/INR foreign exchange rate has been last trading slightly above the 64 handle off recent new all-time highs printed at 64.75 according to Netdania.net and at 64.54 according to Reuters, following latest FOMC minutes released in the US.
USD/INR still under upside pressure
As noted by Marc Chandler, Global Head of Currency Strategy at Brown Brother Harriman, “the Indian government stated it will attempt to 'ease' liquidity and spiking interest rates by buying longer-dated government debt. According to the statement, the bank will purchase the equivalent of $1.3 bln on Friday and 'thereafter calibrate them both in terms of quantum and frequency' based on market condition. The good news is that yields in India are well off their highs earlier in the week.”
USD/INR key technical levels
To the upside, immediate resistance for USD/INR shows at mentioned fresh all-time highs seen around the FOMC minutes 64.55/75, while there are no more historical references as to where it could find resistance, other than Fibonacci extensions, while to the downside, closest support lies at current levels as yesterday's highs 64.04, followed by Monday's highs at 63.47, and Friday's highs at 61.99.
USD/INR still under upside pressure
As noted by Marc Chandler, Global Head of Currency Strategy at Brown Brother Harriman, “the Indian government stated it will attempt to 'ease' liquidity and spiking interest rates by buying longer-dated government debt. According to the statement, the bank will purchase the equivalent of $1.3 bln on Friday and 'thereafter calibrate them both in terms of quantum and frequency' based on market condition. The good news is that yields in India are well off their highs earlier in the week.”
USD/INR key technical levels
To the upside, immediate resistance for USD/INR shows at mentioned fresh all-time highs seen around the FOMC minutes 64.55/75, while there are no more historical references as to where it could find resistance, other than Fibonacci extensions, while to the downside, closest support lies at current levels as yesterday's highs 64.04, followed by Monday's highs at 63.47, and Friday's highs at 61.99.