USDINR
On Tuesday, USDINR is likely to commence between 81.95 – 82.05 levels as dollar dollar rose as New York state factory activity in April increased for the first time in five months, helping bolster expectations the Federal Reserve will raise interest rates in May.
Government data showed on Monday ,India's annual wholesale-price based inflation (WPI) eased to the lowest in nearly 30 months, as input prices continued to moderate.
WPI in March was 1.34% year-on-year, lower than 3.85% in the previous month and a Reuters poll of 1.87%.
In March, the food index rose 2.32% year-on-year compared with 2.76% in February, while fuel and power rose 8.96%, slowing from the 14.82% rate.
USDINR TECHNICAL
Day Trend: - BUY ON DIP
Weekly Trend: - BUY
INTRADAY RANGE – 82.17 (82.05 – 81.93) 81.81
THE DOLLAR GAME
The outlook of U.S. interest rates relative to the monetary policies and economies of other countries can boost or erode the dollar's value.
Bolstering the dollar was a report showing confidence among U.S. single-family homebuilders improved for a fourth straight month in April.
Fed funds futures also showed that expectations the Fed will start cutting rates later this year were pushed back to November from September, with a smaller cut now anticipated.
THE EURO
The euro slid 0.64% to $1.0922 after hitting a one-year high of $1.108 on Friday. Traders expect further interest rate hikes from the European Central Bank as last month's banking crisis fears have faded.
THE YEN
The yen weakened 0.46% at 134.45 per dollar as the Bank of Japan stuck to its easy-money policies, helping the greenback rise to its highest level since March 15.
New Bank of Japan Governor Kazuo Ueda last week made clear that the country would remain a "dovish" outlier by keeping interest rates at ultra-low levels for the time being.
THE OIL
On Tuesday, Oil prices held steady in early trading after falling 2% in the previous session, with markets awaiting the release of economic data in China, looking for signs of economic recovery and growth to offset weakening demand elsewhere.
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