USDINR
We are expecting USDINR to commence the Wednesday session with a firm notes between 73.40 – 73.47 levels as the greenback dollar edged higher, but remained near recent lows after last week’s frail jobs report, while attention turns to a number of central bank meetings during the week.
In the last trading session, the domestic unit finally settled at 73.42 against the greenback, down 32 pips over its previous close. On Monday, the local unit settled at 73.10 against the greenback. Forex traders said the fall in the domestic unit was in line with other Asian peers.
The rupee’s resilience has primarily been because of two reasons: first, foreign fund flows into the Indian market and second, the Reserve Bank of India’s management of the volatility.
UBS strategists expect the Indian currency to weaken to 77 per dollar by the end of the year — more than 5% weaker than current levels — and depreciate further to 79.5 by September 2022.
Day Trend: - BUY ON DIP (Trend about to change)
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