USDINR
On Thursday, The rupee most likely to commence session with slightly firm note between 79.75 – 79.85 levels against greenback as U.S. Federal Reserve raised rates 75 basis points to 2.25-2.5% but did note some softening in recent data.
THE FED
Fed Chair Jerome Powell sounded suitably hawkish on curbing inflation in his news conference, but also dropped guidance on the size of the next rate rise and noted that "at some point" it would be appropriate to slow down.
The future market still has 100 basis points of further tightening priced in by year-end, but also implies around 50 basis points of rate cuts over 2023.
The central bank raised rates by 0.75% point for the second straight meeting as it attempts to rein in inflation, but noted that while the labor market remains strong, other economic indicators have softened.
Fed Chairman Jerome Powell told a news conference following the rate announcement that he did not believe the U.S. economy is currently in a recession but that it is softening.
THE HONG KONG CENTRAL BANK
On Thursday, The Hong Kong Monetary Authority (HKMA) raised its base rate charged through the overnight discount window by 75 basis points to 2.75%, hours after the U.S. Federal Reserve delivered a rate hike of the same margin.
THE OIL
On Thursday Oil prices edged up, extending gains from the previous session, buoyed by lower crude inventories and higher gasoline demand in the United States.
USDINR TECHNICAL
Day Trend: - BUY ON DIP (Short Term)
Weekly Trend: - UPSIDE SELL
INTRADAY RANGE – 80.05 (79.92 – 79.78) 79.65
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