USDINR
On Thursday, The Domestic Unit (Rupee) likely to commence between 82.00 – 82.10 levels against greenback as India inflation hit below RBI tolerance level in first time in three quarter as well as dollar fall on slow CPI data.
India's annual retail inflation for March rose at the slowest pace in nearly 15 months and was below the central bank's upper tolerance level for the first time this year, on the back of softer food prices.
On Wednesday Indian government data showed, Annual retail inflation eased to 5.66% in March from 6.44% in the previous month. This was the lowest reading since Dec. 2021 which was at 5.59% and also lower than Reuters forecast of 5.80% in March.
USDINR TECHNICAL
Day Trend: - BUY ON DIP
Weekly Trend: - HOLD
INTRADAY RANGE – 82.25 (82.14 – 82.04) 81.93
THE DOLLAR GAME
The dollar fell with an index measuring the U.S. currency against six peers down 0.558%.
U.S. consumer prices barely rose as the cost of gasoline declined 4.6%, but stubbornly high rents kept underlying inflation simmering, likely ensuring that the Fed will raise interest rates after policymakers meet on May 2-3.
Inflation is still running well above the Fed's 2% target, causing market angst as investors try to assess when the U.S. central bank might pause its hiking campaign to slow inflation.
THE CAD
The Canadian dollar strengthened against the greenback after the Bank of Canada left its key overnight interest rate on hold at 4.50% as expected and raised its growth forecast for 2023, while dropping language warning of a potential recession.
THE ECB
On Wednesday , European Central Bank policymakers also made the case for more rate hikes but offered contrasting views on just how much more tightening is needed, suggesting the debate over the bank's next move is not yet settled.
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