On Thursday, USDINR start with firm note as dollar advance after FED hold rate till 2023, Uncertainty mounting between INDO - CHINA boarder, Indian Indices expected to start with gap down.
Yesterday , Rupee opened at 73.70, gained the lost ground and finally closed on a positive note at 73.52 against greenback, registering a gain of 12 pips over its previous closing price 73.64. The domestic unit touched an intra-day high of 73.48 and a low of 73.7850 against the greenback.
Corona-virus infections in India surged past 5 million on Wednesday, piling pressure on hospitals grappling with unreliable supplies of oxygen that they need to treat tens of thousands of critical patients.
Indian and Chinese border troops had an exchange of gunfire last week just days before a meeting of their foreign ministers, Indian officials said on Wednesday, in a further breach of a decades-old restraint at the frontier.
INTRADAY RANGE - 73.25 ( 73.42 - 73.79 ) 74.04
FOMC
The Federal Reserve kept rates unchanged Wednesday, and reiterated that monetary policy would remain accommodative for a prolonged period to support the economy's ongoing recovery.
The latest economic projections from the Fed appear to support expectations for rates to remain lower for longer, with policymakers backing the central bank to keep its benchmark rate unchanged at 0.1% through 2023.
The central bank expects the economy to contract by 3.7% in 2020, compared with an estimate for a 6.5% decline previously. But growth in 2021 and 2022 was revised lower to 4% and 3% from 5% and 3.5% respectively.
In the wake of the stronger data, the Fed revised its unemployment rate forecasts for the year to 7.6%, down from 9.3% previously. While inflation is expected to pick up pace and reach 1.2% by year-end, up from a previous forecast of 0.8%.
Central Bank sees unemployment falling to 4.6% by 2022, down from a prior estimate of 5.5% previously. While inflation for 2021 and 2022 was revised higher to 1.7% and 1.8% from 1.6% and 1.7% respectively, but is set for a faster climb to about 2% in 2023.
The Fed’s balance sheet has increased in recent weeks to over $7 trillion, nearing the June peak of about $7.2 trillion.
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