The Indian rupee recovered against the US dollar on Friday, appreciating around 7 paise to end at 67.77. However, gains were capped by the US Federal Reserve's interest rate hike and weak domestic market sentiments. US housing starts plunged in November while the euro gained against the dollar on favorable eurozone economic data. Technical indicators suggest selling the JPYINR pair and buying USDINR.

1. Currency Highlights
19th
Dec’2016
HighLights:
 Indian Rupee recovered from its low to end at 67.77 on Friday
 US Building Permits declined to 1.20 million in November
 Euro Zone Final CPI unchanged at 0.6 percent in month of Novem-
ber
 US Housing Starts plunged to 1.09 million in the previous month
Indian Rupee recovered from its low and appreciated around 7 paise
to end at 67.77 against the US dollar on Friday. The currency appreci-
ated on account of selling of dollars from exporters and bankers.
However, sharp upside in the currency was capped after the US Feder-
al Reserve hiked its interest rates by 25 bps to 0.75 percent in Decem-
ber meeting during the last week. The Federal Reserve also signalled a
faster pace of increases next year as the Donald Trump administration
takes over with promises to boost the US economy through tax cuts,
spending and deregulation. Further, weak domestic market senti-
ments restricted positive movement in the currency.
Indian Rupee moved in the range of 67.740 to 67.876 in Friday’s trade. The Reserve Bank of India (RBI) fixed reference rate for
the dollar was seen at 67.7777 and Euro stood at 70.7531 as on 16th Nov’16.
For the month of December 2016, FII outflows in equities totalled at Rs.1142.02 crores ($167.14 million) as on 16th
December
2016. Year to date basis, net capital inflows stood at Rs.27600.45 crores ($4204.67 million) as on 16th
December 2016.
US Dollar Index declined around 0.1 percent in Friday’s trading session on account of unfavourable economic data from the
country. However, sharp downside in the currency was cushioned after US Federal Reserve hiked its interest rates by 25 bps to
0.75 percent in December meeting in last week. Further, rise in risk aversion in global market sentiments which led to increase
in demand for the low yielding currency prevented sharp fall in the dollar index.
US Building Permits declined to 1.20 million in November as against a rise of 1.26 million in October. Housing Starts plunged to
1.09 million in previous month from 1.34 million in October.
Euro against dollar gained around 0.4 percent on Friday on account of weakness in the dollar index along with favourable eco-
nomic data from the country. However, weak global market sentiments capped sharp gains in the currency.
Italian Trade Balance was at a surplus of 4.30 billion Euros in October as against a surplus of 3.67 billion Euros a month ago.
Euro Zone Final Consumer Price Index (CPI) unchanged at 0.6 percent in the month of November. Euro region Final Core CPI
also remained unchanged at 0.8 percent in the last month. European Union Trade Balance was at a surplus of 19.7 billion Eu-
ros in October with respect to surplus of 24.4 billion Euros in September.
The Sterling Pound jumped around 0.6 percent in Friday’s trade as a result of weaker dollar. However, weak global market sen-
timents restricted sharp rise in the currency.
The Japanese Yen against dollar appreciated around 0.15 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 102.81 103.15 (0.34) (0.33)
USD/INR(Spot) 67.84 67.85 (0.01) (0.01)
USD/INR(NseDec) 67.81 67.88 (0.07) (0.10)
EUR/INR(Spot) 70.91 70.65 0.26 0.37
EUR/INR(NseDec) 70.94 71.07 (0.13) (0.18)
GBP/INR(Spot) 84.69 84.27 0.42 0.50
GBP/INR(NseDec) 84.53 85.09 (0.56) (0.66)
JPY/INR(NseDec) 57.49 57.42 0.07 0.12
MarketHighlights

2. Technical View:
On daily chart JPYINR price has shown breakdown of its
falling wedge pattern at 62 levels. The price has given
breakdown of its horizontal trend line at 58.50 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
40 levels which suggest further weakness can be seen in
the prices.
In addition, momentum indicator MACD has shown neg-
ative crossover and remained below signal line on daily
chart.
So for trading perspective, one could JPYINR sell in the
range of 57.60 with SL of 57.90 for target of 56 levels.
Pivot levels for the Day
Technical View:
The pair has shown breakout of its falling trend line at
67.50 levels on daily chart. On daily chart USDINR price
has retested its falling trend line at 67.20 levels.
On daily chart price has taken support of its 61.80% Fib-
onacci retracement levels.
Moreover, prices have been trading above its 50 DEMA
which gives the sign of bullishness in the prices.
A momentum indicator RSI has been trading above 40
levels, which suggest further positive momentum can be
seen in the prices.
In addition, momentum indicator MACD has shown
positive crossover on hourly chart.
So for trading perspective, one could buy USDINR in
range 67.60 with SL of 67.30 for target of 68.40.
Currency Highlights
19th
Dec’2016
USDINR JPYINR
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
USDINR 67.48 67.66 67.74 67.84 67.92 68.02 68.20
JPYINR 56.88 57.18 57.34 57.48 57.64 57.78 58.08

3. Pivot levels for the Day
Currency Highlights
19th
Dec’2016
GBPINR EURINR
Technical View:
The price has shown breakdown of its falling channel a
pattern at 72 levels on daily chart. The EURINR pair has
shown horizontal trend line at 72.50 levels on daily
chart.
The pair has been trading below its 21 DEMA on daily
chart, which suggest further weakness can be seen in
the prices.
On daily chart momentum oscillator RSI has remained
below 50 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 70.20 levels in the coming trading session.
Technical View:
The price has shown breakdown of its rising channel
pattern at 85 levels on daily chart. The pair has been
facing resistance of its falling trend line at 86.10 levels
on daily chart. The prices have been facing resistance of
its horizontal line at 86 levels.
Moreover, prices have been trading below 50 DEMA,
which suggest short term trend looks negative.
Moreover, momentum indicator MACD has given nega-
tive cross over on daily chart, which gives the sign of
bearishness in the prices.
The momentum indictor RSI has been trading below 60
levels on daily chart, which suggest the possibilities of
further weakness in the prices.
For now we expect prices should move lower towards
83.70 levels coming trading sessions.
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
GBPINR 83.36 83.94 84.23 84.52 84.81 85.10 85.68
EURINR 70.37 70.66 70.80 70.95 71.09 71.24 71.53

4. Currency Highlights
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
19th
Dec’2016
Economic Indicators
Date Time Data Prior Expected Impact
19.12.16 05:20 AM Trade Balance 0.49T 0.59T Actual > Forecast = Good
for currency; JPYINR
19.12.16 02:30 PM German Ifo Business Cli-
mate
110.4 110.7 Actual > Forecast = Good
for currency; EURINR
19.12.16 08:15 PM Flash Services PMI 54.6 55.2 Actual > Forecast = Good
for currency; USDINR

5. Currency Highlights
19th
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: 2016.12.17 14:35:10 +05'30'