USDINR
Happy Friday, USDINR most likely commence between 79.15 – 79.25 levels as the dollar struggled to gain a footing early Asian session after falling by its sharpest pace in two weeks, as investors remained on tenterhooks ahead of the widely anticipated U.S. jobs data and amid growing worries about a recession.
The rupee's weekly volatility jumped to its highest in nearly five months as a lack of guidance on a rate increase by the RBI kept traders guessing.
The rupee was near its record low on Thursday as traders took to the sidelines ahead of the Reserve Bank of India's monetary policy decision. The partially convertible rupee eased 0.4% to 79.4650 per dollar, having tumbled to 79.83 earlier in the day, its lowest level in a week. It hit a record low of 80.065 against the dollar on July 19.
India, the world's third-largest carbon polluter, has finally approved new targets for slashing planet-warming emissions, more than a year after a United Nations deadline for updated commitments.
THE OIL PRICE
Oil prices tumbled further below key levels, and were set for large weekly losses as an escalation in China-Taiwan tensions and an interest rate hike by the Bank of England painted a dim picture for crude demand.
Crude Oil WTI Futures traded up 0.02% at $88.56 a barrel, their weakest level since early February, before Russia’s invasion of Ukraine.
Brent oil futures rose 0.91% to $94.16 a barrel. Both indicators had slumped over 3% on Thursday and were headed for weekly losses of between 12% to 17%.
THE BANK OF ENGLAND
Reeling from a surge in energy prices after Russia's invasion of Ukraine, on Thursday the BoE's rate-setters voted 8-1 for a 0.5% point rise in Bank Rate to 1.75%, its highest since late 2008.
The Bank of England raised interest rates by the most in 27 years in an attempt to smother surging inflation on track to top 13%, even as it warned a long recession is coming.
Governor Andrew Bailey said economic uncertainty was exceptionally large and that all options are open. "Returning inflation to the 2% target remains our absolute priority," he said. "There are no ifs or buts about that."
GLOBAL HIGHLIGHTS
Japan's households raise spending for the first time in 4 months
Italy unveils new $17.4 billion package against inflation
Russian authorities step up the anti-dollar narrative
Crypto firm Blockchain.com registers with Italian regulator
USDINR TECHNICAL
Day Trend: - HOLD TILL RBI POLICY
Weekly Trend: - UPSIDE SELL
INTRADAY RANGE – 80.26(79.66 – 79.06) 78.46
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