USDINR
On Thursday, The domestic unit (Rupee) likely to commence between 82.55 – 82.65 levels against greenback as dollar edged higher on investors awaited U.S. inflation data for May and the Fed’s interest rate decision next week, while the Canadian dollar jumped after the Bank of Canada hiked rates.
On Thursday, The Reserve Bank of India is widely seen holding key rates steady but commentary around the future trajectory of interest rates and banking system liquidity will be closely monitored by market participants.
Indian markets are unlikely to see much reaction if rates and stance is maintained, but a change in stance could fuel a bond and stock market rally while the rupee also could notch some gains.
The commentary around domestic liquidity and the central bank's liquidity management operations in recent weeks will also be a focus for bond market participants with inter-bank rates having shot up intermittently despite overall surplus cash in the banking system.
USDINR TECHNICAL
Day Trend: - HOLD
Weekly Trend: - HOLD
INTRADAY RANGE – 82.76 (82.64 – 82.52) 82.40
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