Currency Update

COMMENTARY Rupee yesterday's price action remained neutral and ended the day with a marginal loss of 0.06percent. But despite loss Short term trend is expected to remain positive. In today's early morning trade price opened gap up and trade is expected to remain positive as long as price keep trading above crucial support of 46.67. An intraday breach above 46.79 would be positive and would attract buying to test next resistances at 46.82, 46.89 and 46.93.  Although long must place their stops at or near 46.67 as drop below this level may attract selling to test next supports at 46.61 and 46.545. Expect prices to trade up with focus being on the breach above 46.79 or below 46.67.
Detail USD/INR Spot 1 Month Forward 2 Month Forward 3 Month Forward 6 Month Forward 12 Month Forward

Jaypee Research Desk
equityresearch@jaypeeindia.com research@jaypeeusa.com

August 24, 2010 Forward Rates 
Bid 46.8800 47.0800 47.3200 47.5300 47.9750 48.7900 Ask 46.9000 47.1800 47.3950 47.6075 48.1150 48.9375

Money Market Details
Call Rate (%) Repo Rate (%) CRR (%) Forex Res. $ (in mn) 5.54 5.75 6.00 282791

USD LIBOR
1 Month  3 Month  6 Month  9 Month 0.2638 0.3175 0.5338 0.7025

Cross Currency Rates

USD/INR Currency Futures on NSE

INR HK $ Aus $ Can. $ CHF GBP JPY EURO US $

USD EUR JPY GBP CHF CAD AUD HKD 46.8925 59.1554 55.3239 72.1645 44.9420 44.3009 41.4978 6.0305 7.7759 9.8094 9.1740 11.9666 7.4525 7.3462 6.8813 ….. 1.1300 1.4255 1.3332 1.7390 1.0830 1.0675 ….. 0.1453 1.0585 1.3353 1.2488 1.6290 1.0145 ….. 0.9367 0.1361 1.0434 1.3163 1.2310 1.6057 ….. 0.9857 0.9234 0.1342 0.6498 0.8197 0.7666 ….. 0.6228 0.6139 0.5750 0.0836 84.7600 106.9257 ….. 130.4401 81.2344 80.0756 75.0088 10.9003 0.7927 ….. 0.9352 1.2199 0.7597 0.7489 0.7015 0.1019 ….. 1.2615 1.1798 1.5389 0.9584 0.9447 0.8850 0.1286

INR ….. 0.1658 0.0241 0.0226 0.0223 0.0139 1.8075 0.0169 0.0213

Detail Feb‐10 Mar‐10 Apr‐10 May‐10 Jun‐10 Jul‐10 Detail Feb‐10 Mar‐10 Apr‐10 May‐10

Last % Change 46.9225 0.47 47.1100 0.47 47.2925 0.45 47.5000 0.47 47.6500 0.44 47.7000 0.13 Last % Change 46.9200 0.49 47.1100 0.49 47.3000 0.45 47.4750 0.41

Open Int. 442796 290565 17252 4058 1509 982 Open Int. 584815 206607 92039 17569

%Change 11.76 ‐13.19 219.79 429.50 458.65 167.52 % Change 103.44 153.60 155.77 ‐11.31

Currency Futures on MCX‐SX

Jaypee Research is also available on Bloomberg <JAYP>

In forward premia market.50/55 to 46.Trading.51% from 2.67/68 at close on Friday last week.com . The market was very range bound today.com Dollar strength & weak Euro continues to weigh on INR   Rupee weakened in tight range trading on Monday as domestic equity markets clocked marginal gains and the dollar’s losses versus majors was offset by concerns over sustained risk aversion in global markets.67/68. tad higher than 46. the rupee initially tried to break 46.jaypeeusa. Euro declined to 1. This week the trade range for USDINR likely to be of 46. but that did not sustain for long. Dollar strengthening continued yesterday and dollar index rose to three week high of 83.     Service Offerings: .80/90 with negative trend on dollar strengthening in overnight trades.65/66 against the US dollar on Friday as compared to previous day close of 46.Currency Update INR/USD:  Market Recap:    Jaypee Research Desk equityresearch@jaypeeindia. For the day ahead rupee is likely to trade in the range of 46.6750.65/60 to 46. Market Outlook: Rupee closed at 46.Financial Planning & Mutual Fund Distribution Jaypee Research Desk www. Advisory & Depository Services .48% while one year forward premium rose to 4.65/66 per dollar.jaypeeindia.2730 in Asia after the NY Fed national activity index showed improvement pulled the dollar higher against the six major currencies.21% on Friday last week.84.com www.80/85 on continued dollar strength ahead of key economic data from US. Euro was also in tight range against the dollar as PMI flash estimate for Germany & EU region came below expectation. Rupee closed at 46. India’s 1QFY’11 GDP numbers are due by end of August could offer a relief to rupee on stronger growth as reflected by trends in industrial production & exports.2663 in late NY trades from 1. The unit traded in a narrow range of 46. EU & domestically as well.39 from 82.32% from 4.com research@jaypeeusa. 6 months premium moved a tad higher to 2.60.56‐46.Equity Research .

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