USDINR Daily Update - 18-Nov

Globally, GBP/USD pair continued to gain to 1.2930 levels as Conservative MPs extended the support to Boris Johnson’s deal. GBP/USD pair is likely to trade on cues from UK’s political developments. The US dollar index slipped further to 97.90 levels amid the positive comments by Chinese media on US-China trade deal.

On domestic front, India’s trade deficit shrink to USD $11.01 Bn in October against USD $18.0 a year ago. The narrowing trade deficit may not necessarily a good news as a sharp decline in import indicates a slowdown in domestic economy. India’s import fell sharply by 16.3% and exports contracted by 1.1% Y-o-Y basis.

The USD/INR pair has opened the session on a weaker note at 71.68 levels against previous close of 71.78 levels. The weak-opening in the pair can be attributed to weaker dollar and easing US-China trade deal concerns. Going forward, USDINR pair has immediate support at 71.50-55 levels, if broken than next support at 71.20-25 levels, and immediate resistance at 71.75-80 levels. Range for the day – 71.35-71.80.