USDINR
On Friday, The Rupee is most likely to start the session with a gap down between 75.30 – 75.40 levels against the dollar as U.S. consumer prices rose higher than forecast in January, leading markets to boost expectations for the Federal Reserve to aggressively fight soaring inflation.
The consumer price index rose 0.6% from December, the Labor Department said, while in the 12 months through January, CPI jumped 7.5%, the biggest year-on-year gain since February 1982.
The Reserve Bank of India's monetary policy committee (MPC) stuck to its accommodative policy stance to help the economy recover from the pits of the pandemic, keeping the key lending rate at record lows on Thursday.
As expected, the MPC held the lending rate, or the repo rate, at 4%. The RBI, however, surprised some economists by also leaving the reverse repo rate, the key borrowing rate, unchanged at 3.35%.
India's central bank chief delivered a stark warning against investing in cryptocurrencies, saying they lacked the underlying value of even a tulip - in a reference to a speculative bubble that gripped the Netherlands in the 17th Century.
Indian shares closed higher on Thursday, after the central bank held its key lending rate steady as expected but surprised markets by leaving the deposit rate unchanged, and as it stuck to its accommodative policy stance to aid the economic recovery.
Day Trend: - BUY ON DIP
INTRADAY RANGE – 75.68(75.32-75.12)74.92
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