USDINR
On Friday, We are expecting USDINR most likely to commence between 81.50 – 81.60 levels as dollar did allow most Asian currencies to recover slightly; they remained pinned near multi-year lows on expectations of more dollar appreciation.
Indian markets are now awaiting an interest rate decision by the central bank on Friday. The Reserve Bank of India is broadly expected to hike interest rates by 50 basis points as it moves to control inflation and support its beleaguered currency.
Rising interest rates severely dented Asian markets this year, as the gap between risky and low-risk debt narrowed. Traders are now positioning for even more rate hikes after commitments from both the Federal Reserve and the European Central Bank.
USDINR TECHNICAL
Day Trend: - UPSIDE SELL
Weekly Trend: - BUY ON DIP
INTRADAY RANGE – 82.25 (81.87 – 81.49) 81.11
THE STERLING
On Thursday, Sterling rose sharply in volatile trading day, rallying from record lows hit on Monday, after the Bank of England conducted a second day of bond buying to stabilize financial markets.
The pound posted its largest one-day percentage gain since March 2020 and last traded at $1.1076, up 1.8%. After hitting an all-time trough of $1.0327 three days ago, sterling has rallied more than 7% against the dollar.
THE YUAN
On Thursday, China’s Yuan bounced from a 14-year low against the dollar hit in the previous session, snapping eight straight days of losses, after the central bank warned against speculative trading and heavy one-way bets on the currency.
The People's Bank of China (PBOC) said that stabilising the foreign exchange market is the top priority, and reiterated that the yuan has a solid basis to be basically stable.
THE ASIAN FX PLAYER
Thai inflation touched a 14-year high this year, while the baht traded in a 16-year trough. The Thai Baht and the South Korean won were among the worst-performing Asian currencies on Thursday, dropping about 1% and 0.8%, respectively. The baht retreated as the central bank’s widely expected 25 basis point hike on Wednesday disappointed some traders who believed more action was warranted.
BE CALM, WAIT FOR RBI MOVE
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