USDINR
On Thursday, The Domestic currency is still range-bound against the greenback, we are expecting the pair to commence session between 77.60 – 77.70 levels as the dollar rose against the euro overnight helped by upbeat U.S. economic data, and as the common currency remained under pressure following the hottest eurozone inflation on record that raised worries about the region's growth outlook.
But Oil price correction around $3 a barrel in early Asian trade on Thursday as investors cashed in on a recent rally with a key producers meeting later in the day set to pave the way for expected output increases will give some lifeline to the Indian rupee.
THE BANK OF CANADA
Canada's central bank lifted its policy rate to 1.5% from 1.0%, inking its first back-to-back oversized increase since inflation targeting began in the early 1990s. It also warned price increases could persist in the near term, so higher rates would be needed.
The Central bank opened the door to a more aggressive pace of tightening on Wednesday, saying it was prepared to act "more forcefully" if needed to tame inflation, even as it went ahead with a historic second consecutive 50-basis-point rate increase.
THE EMERGING-MARKET
The positive sentiment in emerging market currencies has already been soured by higher U.S. Treasury yields.
Emerging market currencies will struggle to hold on to recent gains towards year-end as U.S. Federal Reserve interest rate hikes and inflation concerns keep the dollar in the forefront.
The dollar's recent weakness would be short-lived and it would strengthen against most emerging market currencies by end-August.
USDINR TECHNICAL
Day Trend: - BUY ON DIP (Short Term)
Weekly Trend: - HOLD
INTRADAY RANGE – 77.75 (77.66 – 77.50) 77.37
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