USDINR
On Thursday, USDINR very much likely to commence session with firm note between 82.25 – 82.35 level as dollar edged higher after minutes from the Federal Reserve's June policy meeting reinforced market expectations of another interest rate hike at the end of July.
USDINR TECHNICAL
Day Trend: - BUY ON DIP
Weekly Trend: - BUY ON DIP
INTRADAY RANGE – 82.57 (82.37 – 82.16) 81.96
THE FX MARKET
Fed officials agreed to hold interest rates steady last month and most expected policymakers would eventually need to tighten policy further, a view that pushed Treasury yields higher and added to earlier dollar gains.
Fed funds futures showed expectations of a 25 basis point hike at the end of a two-day policy meeting on July 26.
Australia's dollar fell in line with the Chinese yuan after data showed China's services activity expanded at the slowest pace for five months in June, the latest sign of a sputtering post-pandemic recovery in the world's second-largest economy.
The pound was largely unchanged against the dollar, as the debate continued on how far the Bank of England needs to go to bring inflation under control, with some calling for just two more hikes, while others warning of several more hikes.
USD/JPY corrected, with the yen hovering just around seven-month lows as markets continued to watch for any potential intervention by the government in currency markets.
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