On Monday , USDINR likely to start fresh session on monthly expiry week near 72.53 - 73.60 levels. Short to Medium term labilities of Importers must cover in every fall. Intraday 15 - 20 pips bounce will be opportunities for Exporters short term covering.
Asia’s weakest currency last year is now among its best performers. The rupee has gained 0.6% this year against the dollar, and there are signs it could keep rallying. We may see INR strengthening further in the near-term on supportive inflows, we are cautious on the medium-term outlook but Rising crude oil prices and a widening trade deficit will likely emerge as important headwinds as the year progresses.
The tussle between the central bank and bullish traders though is set to continue, with Governor Shaktikanta Das signaling last month that the RBI won’t relent on building up its foreign-exchange reserves.
The rupee rose to 72.57 per dollar last week, its highest since March. As per Chart Suggested Domestic unit (Rupee) likely to clear the path for its advance to 72.00 per dollar.
INTRADAY RANGE - 72.38 ( 72.52 - 72.67 ) 72.81
The U.S. currency, which is often considered a safe asset during times of uncertainty, is likely to fall further as more investors focus on economic recovery once the worst of the coronavirus pandemic passes.
U.S. dollar fell to a three-year low against its Australian counterpart ,three-year low against the New Zealand dollar and teetered near three-year low against the British pound as progress in curbing coronavirus infections boosted sentiment for riskier assets.
On Monday , Asian Indices inched up as expectations for faster economic growth and inflation globally battered bonds and boosted commodities, though rising real yields were making equity valuations look more stretched in comparison.
Yields on 10-year Treasury notes have already reached 1.38%, breaking the psychological 1.30% level and bringing the rise for the year so far to a steep 43 basis points. Bonds have been bruised by the prospect of a stronger economic recovery and yet greater borrowing as President Joe Biden's $1.9 trillion stimulus package progresses.
One of the stars has been copper, a key component of renewable technology, which shot up 7.7% last week to a nine-year peak. Even the broader LMEX base metal index climbed 5.5% on the week.
Comments