Equity markets continued their journey north with all major markets closing in the green for the week. The Sensex was up 100 points with indices worldwide crossing recent highs. Gold ended unchanged from last week at 1107. The European leaders seem to have a worked up an arrangement to help Greece ending the long stalemate between the leaders. The help from IMF might be necessary and unavoidable but does not bode well for the European Union. The US Dollar strengthened across the board rising against all major currencies. Supported by strong fundamentals inside and sovereign worries in other parts of the world the USD continues to stage a notable rally. On the contrary the USDINR seems to be much less affected by risk appetite in the global front. While the USD strengthened against almost all currencies it depreciated almost 30 paise over last week against the INR before closing at 45.23-24 levels. Strong fundamentals and high returns are driving capital inflows in the country could drive the USDINR further down however we see strong support at these levels and some importer demand might take the pair to 45.50 levels this week.


More >