On Friday , The Domestic unit (Rupee) likely to commence session between 72.58 - 72.68 levels as greenback near multi-month highs supported by a wave of optimism over improving U.S. economic data, the rollout of coronavirus vaccines, and rising Treasury yields. USDINR monthly expiry on today.
As per candlestick pattern , USDINR pair developed piercing pattern near support levels (72.27). We are expecting, that till market hold medium term support level (72.27) pair will bounce above 73.00 as raising corvid cases , inflationary pressure as well as 10yr Yields moving north. Importers must cover short to medium term labilities in tranches.
INTRADAY RANGE - 72.42 ( 72.55 - 72.68 ) 72.81
GLOBAL OUTLOOKS
European currency has soured because of renewed coronavirus lockdowns and the slow pace of vaccinations across the European Union.
The greenback has more room to rise against the euro, but its gains against other currencies in the past few weeks have been so rapid that some analysts are warning against chasing the dollar higher from current levels.
If the dollar starts rallying, that becomes a problem. It means commodity weakness and emerging-market weakness and it starts to provide a disinflationary countervailing narrative
The yen is getting strong on some of the crosses, which will cap dollar/yen. Yields have supported the dollar, but this move could start to run out of steam.
One notable exception to the dollar's gains was the British pound, which edged up to $1.3760 after rising 0.20%. Data due on Friday that is forecast to show a rebound in British retail sales could give the pound a further boost.
The Australian and New Zealand dollars rebounded from sharp losses earlier in the week.
Oil tumbled after surging a day prior when a container ship became stuck in the Suez Canal. The ship may block the vital shipping lane for weeks.
Asian markets are set to open higher after U.S. equities rose as investors weighed the outlook for economic growth and inflation and welcomed progress on vaccination rollouts.
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