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MUMBAI, Dec 27 (www.GoldTradingCalls.com) The dollar fell on Thursday, coming off three-month highs against a basket of currencies after weak U.S. housing data the previous day dampened optimism about the outlook for the U.S. economy.
Other Asian units were also stronger compared to the dollar. The USD INR should be rangebound until the year-end. However, the rupee should weaken in the longer-term and would slowly close higher. We have been saying that USD-INR has bottomed out and will not break the 46-mark levels
One-month offshore non-deliverable forward contracts PNDF were quoted at 46.66/76, marginally weaker than the onshore spot closing rate.
In the currency futures market INR FUTURES, the most traded near-month contracts on the National Stock Exchange and MCX-SX both closed at 46.6950 respectively, with the total traded volume on the two exchanges at a low $3.55 billion.
Dealers said the onshore forward premiums had edged up in recent weeks on expectations of the central bank tightening its monetary policy.
Our Inhouse Quant Forecast in BLUELINE Superimposed on price chart clearly shows that Indian rupee has bottomed out and is currently commenced a multi-week/month raise. The rally will spill over 2010, 1 QTR.
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