The Indian rupee depreciated to a three-week low against the US dollar due to dollar demand from bankers and importers, and cautiousness ahead of the announcement of a new RBI governor. However, steady foreign fund inflows into the debt and equity markets prevented a sharper decline in the rupee. The rupee fell 29 paise over the past two days. Other currencies like the euro, pound and yen also declined against the dollar due to rising risk aversion and weaker economic data from Europe and the UK. Japanese industrial production growth in June capped the yen's losses. Analysts expect the rupee to trade with an upward bias but remain volatile.

1. Currency Highlights
22nd
Aug’2016
HighLights:
 Indian Rupee depreciated to 3 week low at 67.05 in Friday’s trade
 German Producer Price Index (PPI) fell to 0.2 percent in July
 UK’s Public Sector Net Borrowing at deficit of 1.5 bn Pounds in July
 Japan’s Industries Activity gained 1 percent in the month of June
Indian Rupee fell for second consecutive day and depreciated around 24
paise to end at 67.05 against the US dollar on Friday. The currency de-
preciated on account of dollar demand from bankers and importers.
Further, traders were cautious ahead of the announcement of a new
governor for the Reserve Bank of India (RBI) expected to happen in
coming days. Additionally, downside in the domestic market sentiments
led to negative movement in the currency.
However, constant inflow of foreign funds in debt and equity markets
cushioned sharp downside in the currency. Indian Rupee moved in the
range of 66.9075 to 67.0650 in Friday’s trading session. The currency
has depreciated around 29 paise or 0.43 percent in last two trading
days.
The Reserve Bank of India (RBI) fixed reference rate for the dollar was seen at 66.9296 and Euro stood at 75.8714 in Friday’s
trade.
In cross-currency trades, the rupee dropped further against the pound sterling to 87.97 from 87.86 on Thursday and also
moved down further against the euro to 75.91 from 75.72. The domestic currency also fell against the Japanese yen to 66.92
per 100 yens from 66.63.
US Dollar Index gained around 0.36 percent in Friday’s trading session due to rise in risk aversion in global market sentiments
which led to increase in demand for the low yielding currency. However, estimates of favourable economic data from the
country capped sharp upside movement in the currency.
Euro against dollar declined around 0.25 percent on Friday on account of strength in the dollar index. Further, weak global
market sentiments led to negative movement in the currency. Additionally, weak economic data from the region continued
with downside in the currency. German Producer Price Index (PPI) fell marginally to 0.2 percent in July as against a rise of 0.4
percent in June.
The Sterling Pound plunged by 0.7 percent in Friday’s trade as a result of unfavourable economic data from the country. More-
over, weak global market sentiments coupled with stronger dollar continued with downside movement in the currency. UK’s
Public Sector Net Borrowing was at a deficit of 1.5 billion Pounds in July with respect to surplus of 7.5 billion Pounds a month
ago.
The Japanese Yen against dollar depreciated around 0.33 percent in Friday’s trading session due to rise in risk appetite in glob-
al market sentiments in early part of the trade which led to decline in demand for the low yielding currency. However, favour-
able economic data from the country cushioned sharp fall in the currency. Japan’s Industries Activity gained around 1 percent
in June as against a decline of 1.3 percent a month ago.
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Last PrevCl. PriceChng PriceChng%
DollarIndex 94.48 94.14 0.34 0.36
USD/INR(Spot) 67.13 66.83 0.30 0.45
USD/INR(NseAug) 67.15 66.90 0.25 0.37
EUR/INR(Spot) 76.02 75.82 0.20 0.26
EUR/INR(NseAug 76.01 75.73 0.28 0.37
GBP/INR(Spot) 87.78 88.01 (0.23) (0.26)
GBP/INR(NseAug) 88.13 88.01 0.12 0.14
JPY/INR(NseAug) 67.02 66.69 0.33 0.50
MarketHighlights

2. Technical View:
The price has given breakout of its falling trend at 65.80 levels
on daily chart.
Price has shown breakout of horizontal trend line at 66.75
levels on daily chart.
Moreover, prices have been trading above its 21 DEMA on
daily chart, which indicates short term trend remains up.
On daily chart, momentum oscillator RSI has moved above 60
levels, which gives positive confirmation to the prices.
A momentum indicator MACD has shown positive crossover
on daily hourly chart, which indicates further bullishness in
the prices.
For now we expect prices to move higher towards 67.40 lev-
els in few trading sessions.
Pivot levels for the Day
Technical View:
The price has given breakout of its falling wedge pattern at
67.10 levels on daily chart with bolstering volumes. On the
other hand price have given breakout of horizontal trend line
at 67.05 levels on daily chart.
Moreover, price have been trading above its 21 daily expo-
nential moving average which suggest short term trend is
bullish. So any dip in the prices towards 67 level, used as
buying opportunity.
A momentum indicator RSI has moved above 45 levels on
daily chart, which suggest bullishness in the prices.
A momentum indictor MACD has given positive crossover on
daily chart, which gives positive confirmation to the prices.
For now we expect prices to move higher towards 67.45 lev-
els in few trading sessions.
Currency Highlights
22nd
Aug’2016
USDINR JPYINR
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
USDINR 66.75 66.92 67.04 67.09 67.21 67.26 67.43
JPYINR 66.27 66.62 66.91 66.97 67.26 67.32 67.67

3. Pivot levels for the Day
Currency Highlights
22nd
Aug’2016
GBPINR EURINR
Technical View:
The prices have been trading in descending triangle pattern
from past few weeks and prices has taken support of its low-
er band of triangle pattern at 74 levels on daily chart.
On the other hand, Pair has been trading above its 21 daily
exponential moving average which indicates that trend is
turned into bullish.
A momentum oscillator RSI have been trading above 45 lev-
els on daily chart which gives the signs of bullishness to the
prices.
Moreover, momentum indicator MACD has shown bullish
sign on daily chart which support our bullish view on the pair.
For now we expect prices should move higher towards 76.60
levels in the coming trading sessions.
Technical View:
The price has been trading in descending triangle formation
from past weeks and prices have been facing resistance of its
upper bad of triangle at 88.20 levels on daily chart.
The prices have been trading below its 21 DEMA, which sug-
gest short term trend is down.
A momentum indicator RSI has remained below 50 levels on
daily chart, which suggest bearishness in the prices.
Moreover, momentum indicator MACD has shown negative
sign on daily chart which support our bearish view on the
pair.
For now we expect prices should move lower towards 87.40
levels in the coming trading sessions.
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
GBPINR 87.66 87.88 88.01 88.10 88.23 88.32 88.54
EURINR 75.49 75.72 75.87 75.95 76.10 76.18 76.41

4. Currency Highlights
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Economic Indicators
Date Time Data Prior Expected Impact
22nd
Aug’2016

5. Currency Highlights
22nd
Aug’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: 2016.08.22 09:01:27 +05'30'