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2 Currency USD-INR EUR-INR GBP-INR JPY-INR Market Update Exp. Date Open High Low Close Change O.Int % Cng OI Volume ATP RBI Rate Oct Oct Oct Oct Particulars EURUSD EURGBP EURJPY GBPJPY GBPUSD USDJPY Indices BSE Nifty Nikkei HangSeng Straits Shanghai Jakarta Currency Spot (Asian Trading) Economical Data Open High Low LTP % Change TIME ZONE DATA :45pm EUR Spanish Services PMI :15pm EUR Italian Services PMI :20pm EUR French Final Services PMI :25pm EUR German Final Services PMI :30pm EUR Final Services PMI :30pm EUR Retail Sales m/m 5:45pm USD ADP Non-Farm Employment Change Global Market 7:15pm USD Final Services PMI Close % Cng Indices Close % Cng 7:30pm USD ISM Non-Manufacturing PMI Dow Jones :00pm USD Crude Oil Inventories Nasdaq S&P Bovespa CAC DAX FTSE Trading activity on NSE and BSE in Capital Market Segment (In Rs. Crores) 1/10/2018 FII's DII's Source - NSE Buy Value 5, , Sell Value 7, , Net Value -1, ,

3 NSE-CUR USDINR Oct 2018 Rupee dropped tracking the surge in crude oil prices amid strong dollar as globally investors expects Fed to hike rates multiple times by The Reserve Bank of India said it has decided to buy a total of 360 billion rupees worth government bonds under its open market operations (OMOs) this month, in a bid to ease liquidity conditions in the market. The central bank said the auctions would be conducted during the second, third and fourth week of October. It said the OMO amount stated is indicative and RBI retains the flexibility to change it, depending on the evolving liquidity and market conditions. The RBI s open-market operation announcement followed news when India said it would borrow a gross 2.47 trillion rupees ($34.08 billion) from the market between October and March through dated securities, lower than budgeted estimates. The government will effectively cut its market borrowing by 700 billion rupees due to higher-than-expected earnings of 750 billion rupees through its small savings scheme. The RBI said that its assistance plan followed an assessment of durable liquidity needs and the seasonal growth in currency in circulation ahead of upcoming holiday celebrations. The auctions would be conducted during the second, third and fourth week of October, the RBI said.the 360 billion rupee OMO amount stated was indicative and RBI retained the flexibility to change it, depending on the evolving liquidity and market conditions. Technically now USDINR is getting support at and below same could see a test of level, And resistance is now likely to be seen at , a move above could see prices testing OPEN HIGH LOW CLOSE % RE VOL OI R1 R2 R3 PP S1 S2 S ,989, Trading Ideas : # USDINR trading range for the day is # Rupee dropped tracking the surge in crude oil prices amid strong dollar as globally investors expects Fed to hike rates multiple times by 2020 # Reserve Bank of India is set to inject liquidity of 360b Rupees through open market operations in October # The Reserve Bank of India said it has decided to buy a total of 360 billion rupees worth government bonds under its open market operations (OMOs) this month. # RBI Reference Rate for USDINR was at # BUY USDINR OCT SL TGT NSE 2

4 NSE-CUR EURINR Oct 2018 Euro recovered after prices seen under pressure amid uncertainty around the Italian fiscal sector after the recently announced 2.4% budget deficit continues to weigh on investors sentiment. Adding to the downbeat sentiment, Italy s debt sustainability is now under the microscope and could trigger some revisions from credit-rating agencies. European Central Bank policymaker Ardo Hansson said he has not considered succeeding ECB President Mario Draghi when his job comes up next year, according to an interview in German daily Sueddeutsche Zeitung. I hadn t even remotely thought about becoming Mario Draghi s successor, the paper on Monday quoted Hansson as saying. Commenting on the ECB s asset purchasing program, Hansson said while he believed it was too soon to declare the program a success he saw latest developments as encouraging. Germany's retail sales increased at a faster pace in August driven by higher food and non-food product turnover, figures from Destatis showed. Retail sales grew by real 1.6 percent year-on-year in August, faster than the 0.9 percent expansion seen a month ago. The annual rate came in line with expectations. Eurozone inflation increased in September, exceeding the central bank's ceiling, on food and energy prices, while core price growth eased unexpectedly, official data showed. Inflation rose marginally to 2.1 percent, in line with expectations, from 2 percent in August, Eurostat reported. A similar 2.1 percent was logged in July. Final data is due on October 17. Technically now EURINR is getting support at and below same could see a test of level, And resistance is now likely to be seen at , a move above could see prices testing OPEN HIGH LOW CLOSE % RE VOL OI R1 R2 R3 PP S1 S2 S , Trading Ideas : # EURINR trading range for the day is # Euro recovered after prices seen under pressure amid uncertainty around the Italian fiscal sector after the recently announced 2.4% budget deficit. # Italy s debt sustainability is now under the microscope and could trigger some revisions from credit-rating agencies. # European Central Bank policymaker Ardo Hansson said he has not considered succeeding ECB President Mario Draghi when his job comes up next year. # RBI Reference Rate for EURINR was at # SELL EURINR OCT SL TGT NSE 3

5 NSE-CUR GBPINR Oct 2018 GBP recovered after the Chancellor of the Exchequer said the European Union was willing to do a Brexit deal, but investors said uncertainty surrounding the ruling Conservative Party conference could quickly reverse the currency s fortunes. Data showed that British companies had cut their investment in the second quarter of 2018 and the economy grew slightly slower than previously thought. British companies cut their investment in the second quarter of 2018, with Britain s exit from the EU less than a year away, and the country s balance of payments shortfall grew more than expected, data showed. The Office for National Statistics confirmed a previous estimate that Britain s overall economy grew by a quarterly 0.4 percent in the April-June period but lowered the annual growth rate in the second quarter to 1.2 percent from a previous estimate of 1.3 percent. Previous batches of data such as retail sales had pointed to an economy that performed relatively well in the third-quarter, helped by unusually warm weather and British consumers spending more. May warned that Brexit negotiations with Brussels had come to an impasse, inflicting on the pound its biggest one-day loss since The focus has now shifted to the domestic front for next week s annual Conservative party conference, where May will seek to overcome divisions within her party over her strategy for future relations with the EU when Britain leaves in March. Technically now GBPINR is getting support at and below same could see a test of level, And resistance is now likely to be seen at , a move above could see prices testing OPEN HIGH LOW CLOSE % RE VOL OI R1 R2 R3 PP S1 S2 S , Trading Ideas : # GBPINR trading range for the day is # GBP recovered after the Chancellor of the Exchequer said the European Union was willing to do a Brexit deal. # Data showed that British companies had cut their investment in the second quarter of 2018 and the economy grew slightly slower than previously thought. # The Office for National Statistics confirmed a previous estimate that Britain s overall economy grew by a quarterly 0.4 percent in the April-June period. # RBI Reference Rate for GBPINR was at # SELL GBPINR OCT SL TGT NSE 4

6 NSE-CUR JPYINR Oct 2018 JPY traded in range as there are no significant triggers in the market now to provide direction to investors. US-China trade concerns has also faded. The manufacturing sector in Japan continued to expand at a steady pace in September, the latest survey from Nikkei revealed with a manufacturing PMI score of That's unchanged from the previous month, and it remains well above the boom-or-bust line of 50 that separates expansion from contraction. Individually, output growth was sustained amid solid demand pressures. Japan's housing starts increased for the first time in three months in August, data from the Ministry of Land, Infrastructure, Transport and Tourism revealed. Housing starts advanced 1.6 percent in August from last year, reversing a 0.7 percent drop in July. Orders were forecast to climb 0.4 percent. Annualized housing starts decreased to 957,000 from 958,000 in July. Industrial production in Japan climbed a seasonally adjusted 0.7 percent on month in August, the Ministry of Internal Affairs and Communications said in preliminary reading. That was shy of forecasts for an increase of 1.4 percent following the 0.1 percent decline in July. On a yearly basis, industrial production added 0.6 percent - again missing forecasts for an increase of 1.5 percent and down sharply from 2.2 percent in the previous month. Technically now JPYINR is getting support at and below same could see a test of level, And resistance is now likely to be seen at 64.34, a move above could see prices testing OPEN HIGH LOW CLOSE % RE VOL OI R1 R2 R3 PP S1 S2 S , Trading Ideas : # JPYINR trading range for the day is # JPY traded in range as there are no significant triggers in the market now to provide direction to investors. # BoJ Gov Kuroda: Must Watch Out for Potential Impact of Protectionism On Japan s Economy # JPY BOJ's Kuroda: Expects inflation to rise towards 2% target, will maintain powerful monetary easing patiently. # RBI Reference Rate for JPYINR was at # BUY JPYINR OCT SL TGT NSE 5

7 SPREAD MATRIX FOR USDINR SPREAD MATRIX FOR EURINR MONTH RATE OCT NOV DEC MONTH RATE OCT NOV DEC OCT OCT NOV NOV DEC DEC SPREAD MATRIX FOR GBPINR SPREAD MATRIX FOR JPYINR MONTH RATE OCT NOV DEC MONTH RATE OCT NOV DEC OCT OCT NOV NOV DEC DEC MAJOR CURRENCY CROSS RATES Last Trade INR U.S. $ Euro U.K. en RBI Reference Rate 1 INR = Date Last Previous 1 U.S. $ = USD Euro = EURO U.K. = YEN en = GBP

8 Contact Us Head Office Currency Desk Phone: Disclaimer: The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true and is for general guidance only. While every effort is made to ensure the accuracy and completeness of information contained, the company makes no guarantee and assumes no liability for any errors or omissions of the information. No one can use the information as the basis for any claim, demand or cause of action. LKP Securities Ltd., and affiliates, including the analyst who have issued this report, may, on the date of this report, and from time to time, have long or short positions in, and buy or sell the Currencies mentioned herein or engage in any other transaction involving such Currencies and earn brokerage or compensation or act as advisor or have other potential conflict of interest with respect to company/ies mentioned herein or inconsistent with any recommendation and related information and opinions. LKP Securities Ltd., and affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. 6