USDINR
We are expecting that USDINR commences Thursday session with the gap up after the one day holiday (Indian Republic Day) between 74.95 – 75.05 levels as the dollar was perched near a five-week high on early Asian Trade, bolstered after Federal Reserve chair Jerome Powell primed investors for U.S. interest rate hikes beginning in March.
Overnight the Fed left policy unchanged but Powell foreshadowed a sustained battle to tame inflation. Powell said "quite a bit of room to raise interest rates without threatening the labour market" and said the Fed was of a mind to begin lifting rates in March.
India's households are grappling with rising living costs at a time when jobs and incomes have taken a hit amid the pandemic, but economists are not hopeful the government's annual budget due next week will provide much relief.
Oil rose on Wednesday, hit $90 a barrel for the first time in seven years, supported as tight supply and rising political tensions between Russia and Ukraine added to concerns about further disruption in an already-tight market.
Russia has amassed thousands of troops on Ukraine's border, fanning fears of an invasion. Energy market prices rose on worries that Russia's gas supply to Europe could be interrupted. Russia is also one of the world's largest oil exporters.
Day Trend: - BUY ON DIP
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