USDINR
On Thursday, USDINR is most likely to commence in the range between 74.15 – 74.25 level as crude prices plunged below the key $70 per barrel after a shock stockpile build added to COVID concerns.
On the Last Trading session (Wednesday), the rupee strengthened to a six-week high, buoyed by inflows towards initial public offerings, but bonds stayed largely steady ahead of an interest rate review due later this week.
Activity in India's dominant services industry shrank for a third consecutive month in July as restrictions to control the coronavirus pandemic hit demand, with companies turning the most pessimistic in a year.
Day Trend: - UPSIDE SELL.
INTRADAY RANGE – 74.44 (74.27 – 74.08) 73.88
DOLLAR INDEX
On Thursday, The dollar was poised to push higher as hawkish comments from the U.S. Federal Reserve led markets to bring forward the likely timing of a policy tightening there, while the action in Europe and Japan remain distant prospects.
The rally came after Fed vice-Chair Richard Clarida said conditions for an interest rate hike could be met in late 2022, setting the stage for a move in early 2023.
STERLING
On Thursday, the Bank of England is much nearer to tapering and could expand on the timing at a policy meeting later in the day. That outlook helped the pound rally early in the year, though it has gone largely sideways in the last couple of months. It was last pinned near support at $1.3882, having repeatedly failed to clear resistance above $1.3981.
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