We are expecting USDINR commence Tuesday session with firm note at 73.10/73.15 levels. USDINR building base near medium term support level at 72.74 - 72.84 levels. Fiscal deficit as well as inflationary pressure will mount in upcoming period, For domestic unit (Rupee) sentiment sifting to negative front for short to medium term.
INTRADAY RANGE - 72.74 ( 72.92 - 73.23 ) 73.54
On Tuesday , Greenback trading near a seven-week high , largely benefiting from a euro selloff overnight after coronavirus lockdowns choked consumer spending in Europe's biggest economy. Market sentiment would continue to drive the dollar's direction near-term.
The dollar index has been largely tracking a tight range recent weeks, after bouncing from a nearly three-year low of 89.206 at the start of the year.
On Monday , The euro sank the most in 2-1/2 weeks after data showed German retail sales plunged by more than forecast in December, with the continent still struggling with vaccine rollouts.
The BoE will also release its feasibility report concerning the impact of negative rates on banks.
The Bank of England is expected to keep rates and its pace of bond purchases on hold on Thursday, but the central bank will provide clues on whether negative rates are likely to form part of its policy tool kit.
BoE Governor Andrew Bailey has previously downplayed the prospect of negative rates, citing concerns about the impact on the banking system.
Asia Pacific stocks were up on Tuesday early morning, advancing alongside their U.S. counterparts as talks were held about further U.S. stimulus measures. Concerns over volatile trading receded and progress on COVID-19 vaccinations also boosted investor sentiment.
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