On Friday , We are expecting USDINR commence trading with weaker note, as per technical aspect pair will get resistance on 74.05 - 74.15 levels , Exports can cover short term partial position. Due to FII pull out money from Indian equity market as well as subdued interest in govt bond drag Domestic unit (Rupee) near 2 month lows.
Yesterday, The currency pair moved within a range of 22 pips, between 73.7625 and 73.9825 against the greenback, having started the day weaker at 73.8250/8350 compared to its previous close of 73.57.
Business groups welcomed contentious and long-delayed labour reforms passed by the parliament this week, aimed at making hiring and firing workers easier and imposing restrictions on trade unions.
Indian farmers intensified their protests over three new bills that they believe could pave the way for the government to stop buying grain at guaranteed prices, leaving them at the mercy of private buyers such as traders and retailers.
INTRADAY RANGE - 73.54 ( 73.75 - 74.05 ) 74.24
GLOBAL OUTLOOKS
Dollar Index was trading at weaker note on Friday morning in Asia, after earlier gains were reversed over lingering doubts about the latest U.S. stimulus package.
U.S. markets rose on Thursday over increased hopes that the U.S. Congress would break a months-long impasse to pass the latest COVID-19 stimulus measures. Democrats in the U.S. House of Representatives announced that they are working on a $2.2 trillion coronavirus stimulus package that could be voted on next week.
The USD/CNY pair was down 0.30% to 6.82. The offshore yuan reversed its decline over the past week after FTSE Russell’s announcement that Chinese government bonds will be added to the WGBI index starting in 2021.
Foreign ownership of Chinese government bonds has picked up steadily. The inclusion in the WGBI benchmark will prompt additional foreign flows into the Chinese bond market and support the yuan
The pound found its footing against the greenback on Thursday, after the U.K. unveiled fresh measures to protect jobs and businesses that helped ease fears about the impact of newly imposed lockdown measures on the economy.
The EU has threatened to take legal action against the U.K. over plans to press ahead with the so-called internal market bill that seeks to undermine parts of the Brexit deal on Northern Ireland. The EU has set a deadline of the end of this month for the U.K. to scrap the bill.
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