USDINR
On Tuesday, We are expecting USDINR to commence the session with a firm note at +77.00 levels as bond yields surged as a sharp rise in global prices of crude oil stirred concern about domestic inflation, strengthening prospects of interest rate hikes by the central bank. On Monday, The USDINR breached all-time higher levels 76.96 levels on the last trading session and reached up to 76.9850/76.9950 levels.
The fall in local shares also further added pressure on the rupee as foreign investors continued to dump riskier assets.
The Reserve Bank of India typically sells dollars via state-run banks to prevent sharp moves in the rupee. With forex reserves at $631.53 billion by early March.
The benchmark 10-year bond yield ended trading at 6.89%, up 8 basis points on the day, its biggest single-session rise since the sell-off on budget day on Feb. 1 when the government announced a sharply higher-than-expected market borrowing.
Brent crude soared to near $130 a barrel, its highest since 2008, as the United States and European allies mulled a Russian oil import ban while delays in the potential return of Iranian crude to global markets fuelled tight supply fears.
Europe is the most vulnerable as it imports as much as 40% of its natural gas from Russia and the single currency has become increasingly correlated with oil prices - the higher oil climbs, the more the euro falls.
Day Trend: - HOLD (MARKET OVERBOUGHT)
INTRADAY RANGE – 77.31 (77.12 – 76.92) 76.73
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