On Friday , The Domestic unit (Rupee) likely to commence session with weaker note between 72.98 - 73.08 levels as greenback held firmly near 3mth higher level after surging overnight as Federal Reserve Chair Jerome Powell stuck with dovish rhetoric despite a recent spike in bond market volatility.
On Last intraday session (Thursday) , USDINR again behave furious way , we witnessed pair move 46 pips, Domestic unit opened at 73.0150/0250 levels then touch intraday lows at 73.0550/0650 levels. After showing some weakness Rupee corrected all the way till 72.5925/6025 against greenback. Pair finished intraday session with weaker note 72.8350/8450 levels.
FII (-223.11Cr.) and DII (-788.19Cr.) net short on Thursday.
INTRADAY RANGE - 72.48 ( 72.68 - 73.18 ) 73.49
Powell said the violent sell-off in Treasuries last week was "notable and caught my attention" but was not "disorderly" or likely to push long-term rates so high the Fed might have to intervene more forcefully. Instead, he reiterated a commitment to maintain ultra-easy monetary policy until the economy is "very far along the road to recovery."
10-year Treasury yield jumping back above 1.5% and rising as high as 1.58% in Asia. Last week, it had soared to a three-month top of 1.614%.
Riskier currencies including the Australian and New Zealand dollars slid along with stocks as investor sentiment again turned sour.
The +OPEC approved the continuation of current production levels for April at its ministerial meeting on Thursday, going against wide expectations that it would relax the curbs. Meanwhile, Russia and Kazakhstan won exemptions from the curbs.
Asian Indices skidded to one-month lows on early morning as rising U.S. Treasury yields again rattled equity investors while hoisting the dollar to a three-month high, which in turn dragged the Japanese yen.
Volatility seen in local interest rate markets yesterday with another large increase in long-term rates and government bond yields has set the scene for a choppy market again today if overnight developments are any guide.
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