The Indian rupee appreciated against the US dollar for the fourth consecutive day, rising 15 paise to close at 68.19. The currency gained after the RBI raised the MSS ceiling for the government's market borrowing program. However, weakness in domestic markets and foreign fund outflows capped further gains. Economic data from major economies like the US, Eurozone and UK was mixed, with the US adding more jobs than expected in November while the Eurozone's unemployment rate declined. Technical indicators suggest the USDINR pair may decline further while the EURINR is expected to weaken. Key economic reports from major regions are expected over the next two days that could impact currency movements.

1. Currency Highlights
05th
Dec’2016
HighLights:
 Indian Rupee rose for fourth day and gained by 15 paise on Friday
 US Non-Farm Employment Change expanded to 178,000 in No-
vember
 Spanish Unemployment Change fell by 19,900 to 24,800 in No-
vember
 UK’s Construction PMI grew marginally to 52.8-mark in November
 US Unemployment Rate dropped to 4.6 percent in previous month
Indian Rupee rose for fourth consecutive day and appreciated around
15 paise to end at 68.19 against the US dollar on Friday. The currency
appreciated after RBI revised MSS Ceiling to Rs 6 lakh crore from ex-
isting Rs 30,000 crore. However, sharp upside in the currency was
capped as a result of weak domestic market sentiments along with
outflow of foreign funds from the country. Indian Rupee moved in the
range of 67.920 to 68.376 in Friday’s trade. The Reserve Bank of India
(RBI) fixed reference rate for the dollar was seen at 68.36 and Euro
stood at 73.03 as on 2nd
Dec’16.
For the month of December 2016, FII outflows in equities totalled at Rs.761.43 crores ($111.24 million) as on 2nd
December
2016. Year to date basis, net capital inflows stood at Rs.27981.04 crores ($4260.57 million) as on 2nd
December 2016.
US Dollar Index fell around 0.24 percent in Friday’s trading session due to rise in risk appetite in global markets which led to
decline in demand for the low yielding currency. However, estimates of hike in interest rates by the Federal Reserve in its
Dec’16 meeting along with favourable economic data from the country cushioned sharp negative movement in the currency.
US Average Hourly Earnings plunged by 0.1 percent in November as against a rise of 0.4 percent in October. Non-Farm Em-
ployment Change expanded by 36,000 to 178,000 in November from 142,000 in October. Unemployment Rate dropped to 4.6
percent in previous month with respect to 4.9 percent in October.
Euro against dollar rose around 0.1 percent on Friday on account of weakness in the dollar index. Further, favourable econom-
ic data from the region led to upside movement in the currency. However, weak global market sentiments capped sharp gains
in the currency.
Spanish Unemployment Change declined by 19,900 to 24,800 in November as against a rise of 44,700 in October. Euro Zone
Producer Price Index (PPI) grew by 0.8 percent in October when compared to 0.1 percent in September.
The Sterling Pound gained by more than 1 percent in Friday’s trade as a result of weaker dollar coupled with optimistic eco-
nomic data from the country. However, weak global market sentiments capped sharp gain in the currency.
UK’s Construction Purchasing Managers' Index (PMI) grew marginally to 52.8-mark in November with respect to 52.6-level in
October.
The Japanese Yen against dollar appreciated around 0.45 percent in Friday’s trading session due to rise in risk aversion in glob-
al market sentiments which led to increase in demand for the low yielding currency.
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Last PrevCl. PriceChng PriceChng%
DollarIndex 100.66 100.88 (0.22) (0.22)
USD/INR(Spot) 68.02 68.20 (0.18) (0.26)
USD/INR(NseNov) 68.35 68.48 (0.13) (0.19)
EUR/INR(Spot) 72.61 72.74 (0.13) (0.18)
EUR/INR(NseNov) 72.83 72.83 0.00 0.00
GBP/INR(Spot) 86.62 85.83 0.79 0.91
GBP/INR(NseNov) 86.24 86.47 (0.23) (0.27)
JPY/INR(NseNov) 60.12 60.05 0.07 0.12
MarketHighlights

2. Technical View:
On daily chart JPYINR price has shown breakdown of its
falling channel pattern at 61.60 levels. The price has giv-
en breakdown of its descending triangle pattern at 61
levels on daily chart.
Moreover, prices have been trading below its 21 DEMA
which gives the sign of bearishness in the prices.
On daily chart momentum indicator RSI is trading below
50 levels which suggest further weakness can be seen in
the prices.
In addition, momentum indicator MACD has shown neg-
ative crossover and trading below signal line on daily
chart.
So for trading perspective, one could JPYINR sell in the
range of 60.30 with SL of 60.70 for target of 59.70 levels.
Pivot levels for the Day
Technical View:
The pair has been facing resistance of its rising trend
line at 68.85 levels on daily chart. On daily chart USDINR
price has faced resistance of its horizontal trend line at
68.90 levels.
Moreover, prices have been trading below its 21 HEMA
which gives the sign of bearishness in the prices.
A momentum indicator RSI has been trading below 65
levels, which suggest further positive momentum can be
seen in the prices.
In addition, momentum indicator MACD has shown
negative crossover on 4 hourly chart.
So for trading perspective, one could sell USDINR in
range 68.50 with SL of 68.90 for target of 67.80.
Currency Highlights
05th
Dec’2016
USDINR JPYINR
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
USDINR 68.04 68.22 68.29 68.40 68.47 68.58 68.76
JPYINR 59.77 59.97 60.05 60.17 60.25 60.37 60.57

3. Pivot levels for the Day
Currency Highlights
05th
Dec’2016
GBPINR EURINR
Technical View:
The price has shown breakdown of its descending trian-
gle a pattern at 72.70 levels on daily chart. The EURINR
pair has shown horizontal trend line at 72.80 levels on
daily chart.
The pair has been trading below its 50 DEMA on daily
chart, which suggest further weakness can be seen in
the prices.
On daily chart momentum oscillator RSI have been trad-
ing below 60 which suggest bearishness in the prices.
A momentum indicator MACD has shown negative
crossover on daily chart, which add more bearishness
in the prices.
For now we can expect prices should move lower to-
wards 72 levels in the coming trading session.
Technical View:
The pair has shown breakout of its rising channel
pattern at 85 levels on daily chart. The price has been
hovering around its falling trend line at 87.10 levels.
Moreover, prices have been trading above 21 DEMA,
which suggest short term trend looks positive.
Moreover, price has shown breakout of its horizontal
trend line at 84.60 levels on daily chart.
A momentum indicator MADC has given positive Cross
over on hourly chart, which gives the sign of bullishness
in the prices.
The momentum indictor RSI has been trading above 60
levels on daily chart, which suggest the possibilities of
bounce back in the in the prices.
For now we expect prices should move higher towards
87 levels coming trading sessions.
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
GBPINR 85.45 85.89 86.06 86.33 86.50 86.77 87.21
EURINR 71.96 72.46 72.65 72.96 73.15 73.46 73.96

4. Currency Highlights
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
05th
Dec’2016
Economic Indicators
Date Time Data Prior Expected Impact
05.12.16 02:30 PM Final Services PMI 54.1 54.1 Actual > Forecast = Good
for currency; EURINR
05.12.16 03:00 PM Services PMI 54.5 54.2 Actual > Forecast = Good
for currency; GBPINR
05.12.16 08:15 PM Final Services PMI 54.7 54.9 Actual > Forecast = Good
for currency; USDINR
05.12.16 08:30 PM ISM Non-Manufacturing PMI 54.8 55.3 Actual < Forecast = Good
for currency; USDINR

5. Currency Highlights
05th
Dec’2016
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Amit Pathania
Digitally signed by Amit Pathania
DN: cn=Amit Pathania, o=Choice Equity Broking Pvt.
ltd, ou=Research Department,
email=amit.pathania@choiceindia.com, c=IN
Date: 2016.12.03 16:31:06 +05'30'