USDINR
Last trading session on Wednesday, The Rupee hit an all-time lower level at 78.40/78.41 against the greenback, It seems the country's central bank has limited tools to control Rupee depreciation. On Thursday USDINR is likely to commence between 78.20 – 78.30 levels as the dollar fell as U.S. Treasury yields slid on fears the U.S. economy could slide into recession after Federal Reserve Chair Jerome Powell said higher rates are painful but are the means the U.S. central bank has to slow inflation.
POWELL TESTIMONY
On Wednesday, Powell reiterated that on-going increases in the Fed's policy rate would be appropriate, with the exact pace dependent on the economic outlook. He declined to rule out a 100-basis-point move if it proved warranted.
We are not trying to provoke, and I don't think we will need to provoke, a recession
A recession was "certainly a possibility"
It is essential that we bring inflation down if we are to have a sustained period of strong labor market conditions that benefit all
Inflation has obviously surprised to the upside over the past year, and further surprises could be in store
THE OIL
On Thursday, Oil prices fell 2% early trade in Asia , extending losses from the previous day, as investors worried that aggressive U.S. interest rate hikes could trigger a recession and dent fuel demand.
Oil markets remained under pressure as investors were concerned that U.S. rate hikes would stall an economic recovery and dampen fuel demand.
U.S. President Joe Biden, meanwhile, called on Congress to pass a three-month suspension of the federal gasoline tax to help combat record pump prices and provide temporary relief for American families this summer.
USDINR TECHNICAL
Day Trend: - BUY ON DIP (Short Term)
Weekly Trend: - HOLD
INTRADAY RANGE – 78.73 (78.45 – 78.18) 77.90
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