THE USDINR
On Thursday, We are expecting The Rupee most like to commence the session with a firm note between 76.10-76.20 levels as the greenback fell to a one-week low against a basket of currencies overnight after Federal Reserve Chairman Jerome Powell played down the prospect of a 75 basis point rate hike, even as he said the U.S. central bank will act aggressively to stamp out inflation.
THE RBI MOVE
India's central bank raised its main lending rate off record lows in a surprise move on Wednesday to contain rising inflation, shocking markets and pushing the benchmark 10-year bond yield to its highest levels in three years.
Repo rate raised by 40 basis points to 4.40%
CRR raised by 50 basis points to 4.50%, effective May 21
Growth getting stronger but continues to face global headwinds
THE FED MOVE
Fed raised its benchmark overnight interest rate by 50 basis points, the biggest increase in 22 years, in a widely expected decision.
Powell said in a press conference following the Fed’s policy statement that the U.S. central bank is not actively considering a 75 basis point increase, but that additional 50 basis point jumps should be on the table for the next couple of meetings.
The U.S. central bank also said that its $9 trillion balance sheet would be allowed to decline by $47.5 billion per month in June, July and August and the reduction would increase to as much as $95 billion per month in September.
THE OIL
On Thursday Oil prices edged higher at the start of Asian trade, extending gains from the previous session after the European Union proposed new sanctions against Russia that included an embargo on crude oil for six months.
USDINR TECHNICAL
Day Trend: - BUY ON DIP (Short Term)
Weekly Trend: - UPSIDE SELL
INTRADAY RANGE – 76.89 (76.49 – 76.09) 75.69
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