- The Indian rupee fell for the third consecutive day against the US dollar, closing at 68.18 due to dollar demand from importers and outflows of foreign funds from equities. - The US dollar index dropped 0.44% on rising risk appetite, while the euro gained 0.4% on positive German economic data. - Sterling rose 0.3% due to the UK PM's comments on Brexit but gains were capped by a 1.9% plunge in UK retail sales in the previous month. - Technical indicators suggest the USD/INR pair may rise toward 68.6 while the EUR/INR pair may fall toward 71.8 in the next session.

1. Currency Highlights
23rd
Jan’2017
HighLights:
 Indian Rupee fell for third consecutive day to 68.18 on Friday
 US Dollar Index dropped around 0.4 percent in Friday’s trade
 German Producer Price Index (PPI) grew by 0.4 percent in Dec
 UK’s Retail Sales plunged by 1.9 percent in the previous month
Indian Rupee came under pressure from for third consecutive day and
depreciated around 5 paise to end at 68.18 against the US dollar on
Thursday. The currency depreciated on account of dollar demand
from importers and banks coupled with weak domestic market senti-
ments. Further, outflow of foreign funds from selling in equities by the
institutional investors kept pressure on the currency. So far this year,
foreign institutional investors have sold $447.50 million and $312.60
million in equity and debt, respectively.
Indian Rupee moved in the range of 68.03 to 68.24 in Friday’s trade.
The Reserve Bank of India (RBI) fixed reference rate for the dollar was
seen at 68.0883 and Euro stood at 72.7319 as on 20th
Jan’17.
For the month of January 2017, FII outflows in equities totalled at Rs.3255.03 crores ($477.90 million) as on 20th
January 2017.
Year to date basis, net capital outflows stood at Rs.3255.03 crores ($477.90 million) as on 20th
January 2017.
US Dollar Index dropped around 0.44 percent in Friday’s trading session due to rise in risk appetite in global market sentiments
which led to decline in demand for the low yielding currency. However, sharp downside in the currency was prevented as
there are concerns over trade policies after President Donald Trump's inaugural speech in which he promised of lower taxes,
more government spending and looser regulations.
Euro against dollar gained around 0.4 percent on Friday on account of favourable economic data from the region. Further,
weakness in the dollar index coupled with upbeat global market sentiments led to positive movement in the currency.
German Producer Price Index (PPI) grew by 0.4 percent in December as against a rise of 0.3 percent in November.
The Sterling Pound grew around 0.3 percent in Friday’s trade on account of positive sentiments with respect to the UK econo-
my after Prime Minister Statement. Britain’s PM Theresa May gave a clear view on Britain exiting from the European Union
and promise for a vote in Parliament on the final Brexit deal. Moreover, weaker dollar along with upbeat global market senti-
ments kept the currency in positive territory.
However, sharp upside was capped as a result of unfavourable economic data from the country. UK’s Retail Sales plunged by
1.9 percent in the previous month from a drop of 0.1 percent in November.
The Japanese Yen against dollar appreciated around 0.22 percent in Friday’s trading session due to rise in risk aversion in glob-
al market sentiments in early part of the trade 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 100.81 101.17 (0.36) (0.36)
USD/INR(Spot) 68.10 68.10 0.00 0.00
USD/INR(NseJan) 68.23 68.19 0.04 0.06
EUR/INR(Spot) 72.85 72.62 0.23 0.32
EUR/INR(NseJan) 72.58 72.70 (0.12) (0.17)
GBP/INR(Spot) 84.26 84.06 0.20 0.24
GBP/INR(NseJan) 83.76 84.10 (0.34) (0.41)
JPY/INR(NseJan) 59.49 60.10 (0.61) (1.03)
MarketHighlights

2. Technical View:
On hourly chart, the pair has given breakdown of its
horizontal trend line at 59 levels.
The price has given breakdown of its rising trend line at
59.25 levels on hourly chart.
Moreover, prices have been trading below its 21 HSMA
which gives the sign of bearishness in the prices.
On daily chart momentum indicator RSI is trading below
40 levels which indicates down side momentum can be
seen in the prices.
In addition, momentum indicator MACD has shown neg-
ative crossover which suggest lack of strength in the
prices on hourly chart.
So for trading perspective, one could JPYINR sell in the
range of 59.30 with SL of 59.60 for target of 58.80 levels.
Pivot levels for the Day
Technical View:
The pair has been moving in its rising channel pattern
and prices have been hovering around of its lower band
of channel pattern at 68.05 levels on hourly chart.
The price has given breakout of its falling trend line at
68.10 levels on hourly chart.
Moreover, prices have been trading above its 21 HSMA
which gives the sign of bullishness in the prices.
A momentum indicator RSI has shown bullish range shift
at 50 levels, which suggest further positive momentum
can be seen in the prices.
In addition, momentum indicator MACD has shown
positive crossover and moving above its signal line on
hourly chart.
So for trading perspective, one could buy USDINR in
range 68.15 with SL of 67.90 for target of 68.60.
Currency Highlights
23rd
Jan’2017
USDINR JPYINR
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
USDINR 67.77 67.98 68.11 68.19 68.32 68.40 68.61
JPYINR 58.60 58.94 59.06 59.28 59.40 59.62 59.96

3. Pivot levels for the Day
Currency Highlights
23rd
Jan’2017
GBPINR EURINR
Technical View:
The price has taken support of its rising channel pattern
at 72.70 levels on hourly chart. The EURINR pair has
faced strong resistance of its horizontal trend line at
72.90 levels on hourly chart.
The pair has been trading below its 21 HSMA on hourly
chart, which suggest further weakness can be seen in
the prices.
On daily chart momentum oscillator RSI has been mov-
ing below 50 levels on hourly chart, which suggest
bearishness in the prices.
A momentum indicator MACD has shown negative
crossover on hourly chart, which support our bearish
view to the prices.
For now we can expect prices should move lower to-
wards 71.80 levels in the coming trading session.
Technical View:
The prices has been facing resistance of its horizontal
trend line at 84.20 levels on hourly chart.
The price have shown breakdown of its rising trend line
at 83.90 levels on hourly chart.
Moreover, prices have been trading below 21 HSMA,
which suggest short term trend looks weak.
Moreover, momentum indicator MACD has given nega-
tive cross over on hourly chart, which gives the sign of
bearishness in the prices.
The momentum indictor RSI has been trading below 60
levels on hourly chart, which suggest the possibilities of
further downside momentum in the prices.
For now we expect prices should move lower towards
83.20 levels coming trading sessions.
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
GBPINR 82.70 83.31 83.54 83.92 84.15 84.53 85.14
EURINR 71.86 72.28 72.43 72.70 72.85 73.12 73.54

4. Currency Highlights
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
23rd
Jan’2017
Economic Indicators
Date Time Data Prior Expected Impact
23.01.17 07:30 PM CB Leading Index m/m 1.0% Actual > Forecast = Good for
currency; CNY
23.01.17 08:30 AM Consumer Confidence -5 -5 Actual > Forecast = Good for
currency; EURINR

5. Currency Highlights
23rd
Jan’2017
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: 2017.01.21 13:01:51 +05'30'