USDINR
On Thursday, USDINR likely to commence between 83.10 – 83.20 levels as dollar climbed to a six-month peak, reversing earlier losses, after U.S. data showed the services sector surprisingly picked up steam last month amid a rise in new orders and businesses paying higher prices, suggesting persistent inflation pressure.
USDINR TECHNICAL
Day Trend: - BUY ON DIP
Weekly Trend: - HOLD
INTRADAY RANGE – 83.41 (83.24 – 83.07) 82.90
THE DOLLAR
The greenback recovered against most currencies after the data, with the euro and sterling hitting three-month lows and the yen touching session troughs.
Data showed the Institute for Supply Management (ISM)'s non-manufacturing PMI rose to 54.5 last month, the highest since February and up from 52.7 in July. Economists polled by Reuters had forecast the non-manufacturing PMI would decrease to 52.5.
THE YEN
The yen strengthened to as much as 147.70 per U.S. dollar after Japan's top currency diplomat, Masato Kanda, said they will not rule out options if speculative moves persist, the strongest warning since mid-August.
Japan intervened in currency markets 12 months ago when the dollar rose past 145 yen, prompting the Ministry of Finance to buy the yen and push the pair back to around 140 yen. It intervened again in October last year when the currency pair hit 150 yen.
THE YUAN
The Chinese yuan fell crossing the 7.3 mark and hitting its weakest level to the dollar since November 2022 as markets continued to fret over a slowing economic recovery in the world’s second-largest economy.
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