On Tuesday , USDINR likely to start with weaker dollar languished near multi-year lows against most major currencies on Tuesday as the Federal Reserve's new policy framework continued to fuel bets that U.S. rates will stay lower for longer than other countries.
The growth rate of India for April to June quarter was expected to be bad but it turned out worse, -23.9% is worse than the most bearish estimate. Positive agricultural output is the only positive element in the GDP print.
On Monday , Indian rupee gave up early gains and fell sharply against the US dollar amid fresh border tensions with China. India said that Chinese troops on the night of 29/30 August 2020 violated. Rupee closed at 73.62, much weaker than the 73.24 level hit earlier in the session - its strongest since March 5. The rupee had closed at 73.40 in the previous session.
INTRADAY RANGE - 72.88 ( 73.15 - 73.75 ) 73.95
GLOBAL HIGHLIGHTS
The dollar is weak not only against G10 currencies but also against emerging market currencies, this shows the dollar is in a downtrend that will last for some time. Low rates and an excess supply of dollars are driving this move.
The yen was hemmed into a narrow range as politicians jockeyed to choose a new premier following Prime Minister Shinzo Abe's shock resignation last week.
EURUSD , the dollar stood at $1.1990 in Asia session, close to its highest since May 2018.
The British pound bought $1.3406, which is near its strongest level in almost a year.
The AUDUSD pair rose 0.32% to 0.7399. The Reserve Bank of Australia is due to meet later in the day and is widely expected to make few changes to policy. Investors will be looking for the central bank’s economic outlook amid the recent uptick in COVID-19 cases in the country.
U.S. and Taiwan simmered after the U.S. said on Monday that it would establish a new bilateral economic dialogue with Taiwan. Tensions between China and Australia are also heating up over Chinese authorities’ detention of Australian news anchor Cheng Lei, who worked for Chinese government-run station CTGN, in late August.
DAY IMPORTANT ECONOMIC EVENTS
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