USDINR
On Thursday, USDINR is likely to commence between 81.35 – 81.45 after yesterday sharp 0.77% corrections from 81.8350 to 81.24 levels. We are expecting today will be some buying in dollar front as safe-haven bids as risk appetite worsened with stocks on the defensive amid hawkish comments from U.S. Federal Reserve officials that suggested more interest rate increases are likely to tame inflation.
USDINR TECHNICAL
Day Trend: - BUY ON DIP FOR LONG TERM
Weekly Trend: - BUY ON DIP
INTRADAY RANGE – 82.21 (81.62 – 81.02) 80.43
THE GAME OF DOLLAR AND YEN
The earlier sell-off in the dollar came after the Bank of Japan maintained ultra-low interest rates. The yen initially gained sharply but recovered on expectations for tighter policy in the coming months.
THE DOLLAR
St. Louis Fed President James Bullard, for his part, said the Fed should get the policy rate of interest above 5% "as quickly as we can" before pausing rate increases needed to battle an ongoing outbreak of inflation.
THE BOJ
BOJ kept intact its yield curve control targets, set at -0.1% for short-term interest rates and around 0% for the 10-year yield, by a unanimous vote. It also made no change to its guidance that allows the 10-year bond yield to move 50 basis points either side of its 0% target.
THE OIL
Oil prices fell on Thursday after industry data showed a large, unexpected increase in U.S. crude stocks for a second week, heightening concerns of a drop in fuel demand.
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