USDINR
Happy Friday, The USDINR is likely to commence the session within a range of between 77.95 – 78.05 as the greenback is down in early Asia morning as investors digest a 75-basis points interest rate hike announced by the U.S. Federal Reserve Wednesday.
RBI Said, that India's domestic macroeconomic conditions have improved further despite the downside risks posed to global growth from commodity-driven inflation.
On Thursday, Indian shares plunged more than 2% after the Swiss National Bank's surprise interest rate hike raised concerns that aggressive monetary policy action to tame inflation would lead to a recession.
THE BANK OF JAPAN
On Friday, The Bank of Japan is likely to maintain ultra-low interest rates on Friday and stress its resolve to support a fragile economy with massive stimulus, a move that may spark a renewed yen fall by highlighting a policy divergence with the rest of the world.
THE SWISS FRANC
There was always that room for a surprise from the SNB, but I think most currency traders did not anticipate such an aggressive action from the SNB and it was surprising and kind of set the tone for the dollar.
The Swiss National bank joined other central banks in tightening monetary policy in its first rate hike in 15 years, increasing its policy rate to -0.25% from the -0.75% it has deployed since 2015.
The Swiss franc soared against the dollar and the euro after the Swiss National Bank delivered a surprise interest rate hike, while the British pound rose after the Bank of England delivered a rate hike of its own.
USDINR TECHNICAL
Day Trend: - BUY ON DIP (Short Term)
Weekly Trend: - HOLD
INTRADAY RANGE – 78.19 (78.09 – 77.95) 77.85
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