1026 GMT [Dow Jones] The USD/INR has managed to break its multi-month
uptrend that was seen since March, notes Scotiabank strategist Sacha
Tihanyi. Broad USD selling over the past couple of sessions pushed the
pair back toward the 55.00 level, and below that to a three-week low
of 54.95 briefly. But, the house "still sees the USD/INR being
challenged in making sustained downside moves of its own accord,
outside of broad-based USD selling." Tihanyi tips 55.00, and then
54.20 as the next key downside lines in the sand. The pair is now at
55.34. He notes India has made some key economic appointments
recently, with pro-reform P. Chidambaram named the new finance
minister, and ex-IMF economist Raghuram Rajan likely to be chief
economic advisor to the government. While these show the government is
serious about longer-term structural weaknesses in the economy, "any
change is going to be subject to a difficult political process and the
real impact of any future reforms will take much time to be felt."
(khushita.vasant@dowjones.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(END) Dow Jones Newswires
August 09, 2012 06:26 ET (10:26 GMT)
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