2017 so far has turned out to be extremely strong year for INR - so strong that now it's hurting both exporters as well as domestic manufacturers. A country that wants to create jobs cannot afford to have a strong currency at this stage of economic development. Hence little depreciation is good news from economic standpoint. That's what is happening now
Here's how USDINR appear on daily chart - Trading at 6 month high.
As you can see in the chart above - USDINR is already near 200 dma and if INR depreciates more, then one cannot rule out rally to 67. On a longer term time frame - USDINR has a stiff resistance at 68.89 and it seems like that INR will slowly gravitate towards that level
Economically, it will be better if INR trades near 68-69 rather than 63-64 levels
India needs strong currency...yes when you are fighting inflation not when you are fighting joblessness. Hey but you are inconsistent 😉
— Deepak Singh (@smarket) September 15, 2017
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers