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THURSDAY FX OUTLOOKS:- INR FIRM, DOLLAR WEAKER ON FOMC HOLD RATE!!

USDINR

On Thursday, The Rupee likely to commence between 82.00-82.10 levels against greenback as dollar slid after the Federal Reserve held interest rates steady.

  • Indian wholesale prices fall 3.48% in May

  • Ahead of Modi visit, journalists' group urges US to press India on media crackdown

  • Flipkart and PhonePe could be $100 billion businesses in India, Walmart says

  • Metals, FMCG stocks lift Indian shares ahead of Fed policy decision

USDINR TECHNICAL

Day Trend: - BUY ON DIP

Weekly Trend: - SELL ON UPSIDE

INTRADAY RANGE – 82.47 (82.21 – 81.95) 81.69


THE FED

The rate-setting FOMC in a unanimous policy statement issued at the end of its latest two-day meeting, "holding the target (interest rate) range steady at this meeting allows the committee to assess additional information and its implications for monetary policy."

  • While signalling more rate increases, Fed Chair Jerome Powell said in a press briefing that the U.S. central bank was not so far away from its target on the benchmark fed funds rate.

  • Officials now expect the fed funds rate to top out at 5.6% this year, implying two more 25 bps increases in 2023, up from the 5.1% estimate in the last set of forecasts released in March.


THE MAJOR CENTRAL BANK

  • The ECB rate decision is up next on Thursday, with markets pricing in a 25 BPS hike and another in July before a pause for the rest of the year.

  • The BOJ due to announce a monetary policy decision on Friday, is expected to maintain its ultra-dovish stance and yield curve control settings.


THE OIL

Crude prices fell almost 2%, clawing back most of their gains from the previous session, after data showed crude stockpiles grew seven times more than expected last week.

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