We are expecting , The domestic units start Thursday session with firm note as emerging market currencies getting firm lead by Indonesian rupiah (+0.99%). USDINR have stiff resistance between 74.90 - 75.05 levels.
Exporters must cover short-term position in every bounce in tranches via forwards.
The rupee depreciated 0.3850 pips to 74.7850/7950 against greenback in opening trade on Wednesday. The USDINR witnessed strong resistance at 74.89/90 levels as pair reached intraday lows at 74.5825 before finished at 74.74/75 levels.
State Bank of India, the country's largest lender by assets, on Wednesday forecast stronger annual credit growth and beat estimates for quarterly profit as economic activity gathers momentum after being hammered by one of the world's strictest lockdowns.
Activity in India's dominant services industry, expanded for the first time in eight months in October as demand surged, but pandemic-hit firms continued to cut jobs, a private survey showed on Wednesday.
INTRADAY RANGE - 74.02 ( 74.31 - 74.70 ) 75.01
GLOBAL HIGHLIGHTS
The moves in the yuan and the peso show that the market is trying to price in a Biden victory.
A Biden administration could also boost to some currencies, such as the Mexican peso, that suffered under the tariffs imposed by the Trump administration at the expense of the dollar Biden is widely expected to take a softer tone on trade policy than Trump. The peso steadied from Wednesday’s 0.9% gain earlier in the day.
The dollar was subdued from early Asian session, avoiding big moves as the winner of a nail-biting U.S. presidential election has yet to be declared.
Investors are keeping an eye on whether the onshore yuan would gain against the dollar, with the yuan seeing a brisk trade as a bet on a Biden victory. The USD/CNY pair edged up 0.05% to 6.6513.
The GBP/USD pair was down 0.13% to 1.2968. The pound saw losses over news that the Bank of England, due to announce its monetary policy later in the day, is considering negative interest rates.
The Federal Reserve will also hand down its monetary policy later in the day, which is widely expected to remain on hold.
USA ELECTION HIGHLIGHTS
Democrat candidate Joe Biden has 264 of the 270 electoral votes needed to declare victory, compared to incumbent President Donald Trump’s 214, according to Bloomberg, claiming victory in the states of Wisconsin and Michigan earlier in the day.
The election now hangs on the vote count from a few remaining swing states, and Trump is already pursuing lawsuits and a recount in Pennsylvania and Michigan. The uncertainty could negatively impact the dollar in the short run, some investors warned.
Even if Biden were to overcome the challenge posed by Trump and become the next president, the failure to achieve a Democrat sweep of the Senate and House of Representative could hamper his fiscal agenda for big stimulus packages to aid the COVID-19-hit economy and pose an additional challenge to investors.
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