MONDAY USDINR & GLOBAL OUTLOOKS:- RUPEE HAVE NO RELIEF ZONE!!!

USDINR

On Monday, Again it seems USDINR commence the session new all-time high between 82.60- 82.70 levels as the dollar started the week firmly, with a strong U.S. labor market reinforcing bets on higher interest rates as traders braced for data expected to show stubbornly high inflation.

• India's foreign exchange reserves fell to $532.66 billion in the week through Sept. 30, their lowest level since July 2020, RBI weekly statistical supplement showed on Friday.

• India's monthly fuel demand in September was at the lowest since November 2021, government data released on Friday. Total monthly fuel demand in September fell 3.6% from August, although it was up 8.1% when compared with September 2021.

USDINR INTRADAY TECHNICAL

Day Trend: - BUY ON DIP

Weekly Trend: - UPSIDE SELL

INTRADAY RANGE – 82.83 (82.71 – 82.05) 81.78

THE DOLLAR

U.S. unemployment unexpectedly fell last month, Friday figures showed, and inflation data due on Thursday is forecast to show headline inflation at a hot 8.1% year-on-year. Policymakers' preferred core inflation is seen rising to 6.5%.

• Futures pricing suggests traders see a nearly 90% chance of a 75 basis point rate hike in the United States next month and more than 150 bps of tightening by May. Ten-year Treasury yields rose for a tenth straight week last week.

THE OIL

Benchmark Brent crude futures jumped more than 11% last week after the Saudi-led production cartel agreed to cut supply while intensifying war in Ukraine is also a threat to Europe's energy security as winter approaches.

CHINA REOPEN

Chinese markets reopen after a week-long holiday, and ahead of that, the offshore yuan was steady at 7.1320 per dollar. The Communist Party's 20th National Congress opens on Sunday and is expected to reaffirm Xi Jinping's leadership.

READY FOR VOLATILITY