The Rupee sentiment fragile on surging covid19 cases in India , On Thursday session Rupee likely to start mildly positive note between 74.35/45 level with negative base against greenback as India reported a record 126,225 new COVID-19 cases on Wednesday, a 14-fold increase in just over two months, raising pressure on the government to expand its vaccination campaign.
On Last session , At the interbank foreign exchange, the Indian currency settled at 74.55/56 to the greenback – marking its lowest level since November 13 last year. The rupee also logged its worst single-day fall since August 5, 2019. Intraday range was 73.5125 -74.56 levels. Reserve Bank of India’s monetary policy committee kept the key rates unchanged and also retained ‘accommodative’ stance.
INTRADAY RANGE - 73.74 ( 73.98 -74.75 ) 75.02
GLOBAL OUTLOOKS
Asia Indices were mixed on early Thursday morning, as investors digested the U.S. Federal Reserve’s continued commitment to its supportive policy.
The Fed was unanimous on the need to see more progress on the “highly uncertain” path to recovery ahead of scaling back its massive bond-buying program, according to the minutes from its March meeting released on Wednesday.
The minutes also downplayed the risk of inflation from the recent surge in Treasury yields, instead maintaining that the surge reflects stronger growth prospects. Investors have scaled back their most aggressive positioning for interest rates to start rising by the end of 2022 in response.
On Thursday ,Bond Yields steadied with the yield on the benchmark 10-year note remaining below a 14-month high of 1.77% hit on Mar. 30.
Treasury Secretary Janet Yellen also unveiled details of a plan that is estimated to bring back about $2 trillion in corporate profits into the U.S. tax net. The profits are likely to fund U.S. spending initiatives, in turn reducing reliance on further borrowing that could drive rates higher.
The vaccination progress in the Eurozone is significantly lagging that of the U.S., and coronavirus infection rates in the Eurozone are on the rise again.
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