- The yen weakened against the dollar, halting its biggest gain in three weeks, after Japan’s Economy Minister Akira Amari backed away from weekend comments that prompted the currency to rally.
- The pound slid to a six-week low against the dollar after a government report showed inflation slowed more than economists forecast, giving the central bank more room to boost stimulus that tends to weaken a currency.
- Dollar gains were capped before Wednesday's testimony from U.S. Federal Reserve Chairman Ben Bernanke.Speculation the U.S. central bank will trim its bond purchases sooner than expected has mounted given signs of an improvement in the U.S. labor market. Bernanke testifies to Congress at 10 a.m. EDT (1400 GMT) and his words will be combed for clues.
- The currency specialists say that the trend is positive for USD, infact INR is seen weakening further against all major currencies (like EURO, YEN). The pivot for trading stands at 55.35 and INR is expected to further weaken to Rs.55.62--55.80 ranges against the USD.
- Thus IT and Textile Companies are expected to benefit from this move. Most of the big IT companies and some mid--sized companies like Glodyne Tech Ltd (Rs.11.94), Hexaware Tech (Rs.77.55), Zenser Tech (Rs.244.75), etc, generate a good amount of revenues from the overseas market. I have already initiated a buy in Glodyne Tech Ltd now Hexaware Tech Ltd is also giving buy signals at the CMP, for a target of Rs.84.
Thursday, May 23, 2013
Weakening of the INR against the USD might help the IT and Textile Companies
Note: This message was sent to the Paid Members yesterday night, i.e, on 22nd May, 2013. If anyone has played the currency he would have benefited.