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TUESDAY FX OUTLOOKS:- USDINR FIRM, POWELL MIXED, YUAN MOUNTING!!

USDINR

On Tuesday, USDINR is likely to commence between 82.80 – 82.90 levels as dollar rose holding just below a six-month high, as investors waited on fresh data to signal whether the U.S. Federal Reserve is likely to continue hiking interest rates, while watching for news of a congressional deal to raise the U.S. debt ceiling.


USDINR TECHNICAL

Day Trend: - HOLD

Weekly Trend: - UPSIDE SELL

INTRADAY RANGE – 83.03 (82.90 – 82.77) 82.64


THE POWELL

Comments from Fed Chair Jerome Powell on Friday that tighter credit conditions could mean fewer rate hikes pulled the greenback off its highs.

  • The greenback has gained for the past two weeks as stronger than expected economic reports and hawkish Fed officials keep the prospect of further interest rate increases alive.


THE YUAN

The Chinese yuan weakened to 7.0466 per dollar in offshore trading, creeping back toward Friday's six-month low of 7.075.

  • The yuan has been under pressure on growing signs China's post-COVID-19 recovery may already be petering out, but got some respite on Friday after the People's Bank of China pledged to curb large exchange rate fluctuations.

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