We are expecting that , Indian currency commence Monday trading with in range as dollar steadied against major currencies as traders looked to more data for a gauge on the health of the global economy and the Federal Reserve's annual Jackson Hole retreat for guidance on the outlook for U.S. monetary policy.
Optimism over the development of Covid-19 vaccine along with broad-based growth trends is expected to induce volatility in the rupee's value during the short term.
This week the movement in USD/INR spot has mainly been dollar driven and the spot traded in a very tight range.Last week, the USDINR stuck in very tight range between 74.65 - 75.07.
INTRADAY RANGE - 74.67 ( 74.81 - 74.95 ) 75.09
GLOBAL HIGHLIGHTS
Sentiment for the greenback has improved somewhat due to supportive data on business activity and home sales, but there are still concerns that additional monetary easing may be necessary to keep economic growth on track.
Net short positions in the dollar declined from a more than nine-year high hit a week earlier, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released on Friday, which suggests that the greenback's declines could start to slow.
Traders in the yuan, and across the broader financial markets, are also nervously watching Sino-U.S. ties as President Donald Trump's wide-ranging diplomatic dispute with China shows no signs of abating.
The yen held steady, with the dollar changing hands at 105.80 yen , showing little reaction after Japanese Prime Minister Shinzo Abe entered hospital on Monday amid speculation about his health.
Federal Reserve Chairman Jerome Powell will discuss monetary policy on Thursday at the opening day of the Kansas City Fed's annual symposium. This year the meeting will be held online, and not at the hunting and fishing resort of Jackson Hole, Wyoming because of the coronavirus pandemic.
MAJOR FX INTRADAY RANGE
EUR/USD - UPSIDE SELL
(1.1861 - 1.1732)
GBP/USD - UPSIDE SELL
(1.3189 - 1.2992)
USD/JPY - HOLD
(106.15 - 105.50)
DOLLAR INDEX - BUY ON DIP
( 93.68 - 92.76 )
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