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MONDAY FX OUTLOOKS:- Rupee weaker, Dollar up, Oil shoring, Euro low!!

USDINR

The pair trading near all time higher levels (83.29/83.30) despite nifty trading at all time highest levels. USDINR likely to commence Monday session between 83.05 – 83.15 levels as dollar poised for a ninth straight week of gains, while the yen weakened to a 10-month low.

  • Indian shares extend record rally; Sensex logs longest winning run in 16 years

  • India's merchandise trade deficit at $24.16 billion in August

  • India's finance minister optimistic 10.5% nominal economic growth target achievable

  • Foxconn aims to double jobs, investment in India over next 12 months

USDINR TECHNICAL

Day Trend: - HOLD

Weekly Trend: - HOLD

INTRADAY RANGE – 83.45 (83.24 – 83.03) 82.82


THE FED

The Federal Reserve will hold a policy meeting next week on Sept. 19-20 and the central bank is largely viewed as keeping interest rates unchanged, with a 97% expectation for no action.

  • The U.S. dollar index still poised for its ninth straight weekly gain, which would mark its longest weekly run since a 12-week streak of gains in 2014.

THE EURO

The euro having recovered slightly from Thursday's six-month low of $1.0629 following the European Central Bank's (ECB) policy announcement, in which the central bank raised rates to a record-high 4% but signaled it was likely done with hikes.

  • ECB policymakers pushed back on the idea the central bank was done with rate hikes, saying rates will be kept high for an extended period and could even be raised again if needed.


THE OIL

Oil prices fell slightly in Asian trade as traders hunkered down in anticipation of several key central bank meetings this week, although the prospect of a tighter market, on more supply cuts, kept prices at 10-month peaks.

  • Saudi Arabia and Russia recently said that their 1.3 million barrels per day cuts will extend until the end of the year, presenting a tight outlook for oil markets.

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