>Currency Corner (ANAGRAM)

Thursday, dollar’s retreat against the odds and mixed tone against crosses poised for USDINR (feb) contract for soft opening. Further, bullish cues of renewed recovery in Asian stocks weighted onto higher opening at local equity front, which to some extent prevented rupees’s momentary fall. Unclear clues for currency refrained participants to trade either side as USDINR traded choppy mainly in narrow range of 48.84 - 49.00. However, pumping of dollar demand from oil importers facing month month end import commitments with weak shares adding to the gloom showed sudden spike in dollar as it moved higher briefly amid touching an intraday high of 49.12, while closing the daily at 49.10. Technically speaking, the pair find residual bids above 49.05 though it was believe that they may not be especially sizeable. But cross over above 49.15, at this juncture of consolidating phase might expose to previous tops 49.26 and 49.41. While downside looks limited as USDINR has strong support at 48.92. For any bearish crossover, deep cut below is crucial for a bearish outcome.

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