On Thursday , Rupee likely commence session with weaker note between 73.05 - 73.12 levels as greenback extended gains against most currencies as a stock market rout due to concerns about excessive valuations boosted safe-harbour demand for the U.S. currency.
Last Trading session (Wednesday) USDINR opened at 72.89/90, pair touch intraday lows at 72.7850/72.7950 levels , after mid session pair got some boost and hit intraday high at 72.9350/72.9450 levels before finished at 72.91/92 levels.
Note: -USDINR create hammer(Candlestick pattern) near support levels, positive divergence in Relative strength Index (RSI) as well as we expect today opening will be gap up, So any correction is opportunities for Importers to cover some position for short to medium term liabilities.
USDINR INTRADAY RANGE - 72.88 ( 73.00 - 73.21 ) 73.36
The dogged optimism that vaccines would heal the global economy in just a few months has been strained by the outbreak of new variants and problems with the distribution of shots in the United states and Europe.
Dealers said highly leveraged investors were taking profits where they could to cover losses elsewhere, leading to sharp falls in a lot of overcrowded trades.
The U.S. Federal Reserve kept monetary policy unchanged as expected on Wednesday but did signal some concern about the pace of economic recovery, which some traders said is another negative factor.
U.S. gross domestic product data is due later on Thursday to gauge the strength of the world's largest economy as it struggles with the coronavirus pandemic.
Bullion has lost more than 3% this month, its worst January performance since 2011, as traders weighed the strengthening greenback, prospects for more stimulus, and trajectory of the pandemic. Powell said that the widespread availability of vaccines was grounds for optimism, noting that “several developments point to an improved outlook for later this year.”
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