USDINR
On Thursday, USDINR is most likely to commence with a mild weaker note between 82.20-82.30 levels as Oil prices struggled to find their footing in early Asian trade after a weakening global demand outlook depressed the market in the last session.
India's retail inflation accelerated in September to a five-month high of 7.41% year-on-year as food prices surged, raising fears of further interest-rate hikes when the central bank meets for its next policy review in December.
India's industrial output unexpectedly fell year-on-year in August for the first time in 18 months, as heavy rains dampened mining and construction activity while a drop in manufacturing indicated a broader slowdown. India's industrial output fell 0.8% from August 2021, compared with Reuter’s poll of a rise of 1.7% and a rise of 2.4% in July.
USDINR INTRADAY
Day Trend: - BUY ON DIP
Weekly Trend: - UPSIDE SELL
INTRADAY RANGE – 82.49 (82.40 – 82.18) 82.06
THE OIL
OPEC on Wednesday cut its outlook for demand growth this year by between 460,000 bpd and 2.64 million bpd, citing the resurgence of China's COVID-19 containment measures and high inflation.
Worsening demand for crude oil is contributing to inventory builds. U.S. crude oil stockpiles rose by about 7.1 million barrels for the week ended Oct. 7.
THE DOLLAR
The greenback pared gains after minutes from the last Federal Reserve meeting showed some dovish undertones. Several participants noted the importance of calibrating the pace of further tightening to mitigate the risk to the U.S. economy, the minutes said. The Fed though remained committed to raising interest rates in order to bring down inflation.
THE STERLING
The pound, on the other hand, rose following a drop to a two-week low versus the dollar and euro late, after the Financial Times reported that the BoE has signaled privately to lenders it is prepared to prolong its bond purchases.
THE YEN
Bank of Japan Governor Haruhiko Kuroda said fast and one-sided moves in the yen would be bad for the economy, signaling the speed of its fall - rather than levels - was the key concern for policymakers as the currency plumbs fresh 24-year lows.
Kuroda said the government's decision to intervene in the currency market to stop one-sided declines in the yen was "quite appropriate," adding the BOJ will continue to monitor the impact of the currency's moves on the economy.
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