The EURINR dropped early Monday to a level expected last Friday. Suggested to sell at 65.50-65.60 On Friday. The exchange rate posted a low of 64.48 today. (MCXSX- May future)
From the FX and asset side, the Chinese inflation data is critical this week which is expected to decline to 5.2% from 5.4% earlier. Retail Sales and Industrial production is also due which are on a positive reading. Data will be released tomorrow in Mid Asian hours.
In other developments, Sino-US Strategic and Economic Dialogue (S&ED) is expected to discuss about the revaluation of the yuan. A few days before the third S&ED, US Treasury Secretary Timothy Geithner repeated that the "yuan is undervalued" and asked China to adjust the exchange rate at a faster pace in order to correct the problem. His remarks echo US Senator Charles Schumer, who said he was "dissatisfied" with China's failure to promise a faster revaluation of the yuan during his recent visit to the country.
Yuan revaluation is less likely in immediate scenario, but the dialogue may bring in some hope of further revaluation by China in coming days. Revaluation of yuan is a positive sign for India and as well as for south Asian export oriented economies.
Today, we may see some mild pulls in EURUSD towards 1.4450-1.45 mark while trend remains weak as of now. The EURINR may see moves between 64.30-64.60 with sideways manner. EU public debt remains a concern and there are rumors of Greece exiting from euro currency on Friday.
In case of USDINR, decline is likely towards 44.55-44.60 mark in the interbank market while at limited pace.
No comments:
Post a Comment