On Thursday , Domestic Unit (Rupee) most likely to commence session with positive note between 72.30 - 72.38 levels against greenback was up on early morning in Asia, but kept near three-year lows, as the U.S. Federal Reserve continued a dovish stance that stoked reflation fears.
Last Session , USDINR stuck in range between 72.26 - 72.40 levels before finished at 72.33 levels. On daily basis USDINR in oversold territory .
INTRADAY RANGE - 72.12 ( 72.26 - 72.40 ) 72.54
GLOBAL OUTLOOKS
Fed Chairman Jerome Powell on Wednesday reiterated that the central bank would maintain its easy policy until there are clear signs of economic improvement and would look through the short-term rise in inflation. The comments, part of Powell’s testimony before the House of Representatives Committee on Financial Services, were not dissimilar to Powell’s testimony before the Senate on Tuesday.
The U.S. currency fell to a fresh low against the Australian dollar and hovered near lows seen overnight against the pound as well as the Canadian and New Zealand dollars.
The EUR/USD was also trading near the top at 1.2164 of its recent range, after nearing a one-month high earlier in the week.
The GBP/USD inched down 0.03% to 1.4138, with the pound nearing the $1.43 mark during the previous session for the first time since April 2018.
The AUD/USD pair inched down 0.11% to 0.7958, after the AUD climbing to a fresh three-year high earlier in the session.
The NZD/USD pair edged down 0.12% to 0.7420, close to the multi-year highs reached during the previous session.
The USD/JPY pair edged up 0.14% to 106.00. The yen, a fellow safe-haven currency to the dollar, saw a third consecutive of losses against the greenback.
House Financial Services Committee hearing today, Powell responded to questions from Rep. Patrick McHenry, who said the digital dollar would likely face national and economic security issues for the United States. Powell said there were many concerns surrounding the project and the Fed intended to reach out to the public.
The dovish influence from the Fed is going to continue to resonate over in Asia. That's really good for emerging market assets when we've got a really good impulse from the Fed.
Gold prices struggled for traction as elevated Treasury yields eroded the allure of bullion as an inflation hedge.
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