USDINR
On Thursday, USDINR is most likely to commence session within range of 81.50-81.60 levels despite dollar index correct from 20 year high as Oil price jump again after +OPEC cut output for control price narrative.
The Indian central bank likely sold dollars via state-run banks on last trading session as rising oil prices and weak risk appetite pushed the rupee to within striking distance of record lows.
India has raised total import duty on platinum to 15.4% from 10.75%, the government said, seeking to bring parity in import duty structure between gold and platinum.
USDINR INTRADAY TECHNICAL
Day Trend: - BUY ON DIP
Weekly Trend: - UPSIDE SELL
INTRADAY RANGE – 81.85 (81.68 – 81.35) 81.18
THE DOLLAR
Underpinning the greenback's ascendancy were the U.S. economy's superior performance, the Federal Reserve hiking interest rates by 300 basis points this year - with more expected - and the role it plays as a safe-haven currency.
With those broad narratives supporting the dollar well into next year the greenback was likely to be well bid over the short-to-medium term.
THE YEN
Despite the intervention and expectations of more to come, the yen's weakness is not over yet as BOJ Governor Haruhiko Kuroda is unlikely to reverse his long-held pledge to keep policy ultra-loose anytime soon.
On Reuters poll, Japan's yen will recoup only a third of its big losses against the dollar in the coming year as the policy gap between the ultra-hawkish U.S. Federal Reserve and the extremely dovish Bank of Japan is set to widen further.
The policy divergence has battered the currency. It has lost over a fifth of its value this year and hit a 24-year low of 146/dollar recently, so authorities intervened in the foreign exchange market for the first time since 1998 last month, spending 2.8 trillion yen.
THE UK RATING
Ratings agency Fitch lowered the outlook for its credit rating for British government debt to "negative" from "stable" on Wednesday, days after a similar move from rival Standard & Poor's following the government's Sept. 23 fiscal statement.
Fitch maintained its "AA-" credit rating for Britain, which is one notch lower than S&P's.
Sterling fell to a record low against the U.S. dollar and some British government bonds tumbled by the most in decades, forcing the Bank of England to step in to stabilize markets.
Don't fight with market just flow with it.
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