On Tuesday , The Rupee likely to start session with positive note between 72.18/26 levels despite greenback held near 3 month highest level as higher bond yields and expectations of faster economic normalization from the pandemic in the United States put the U.S. currency at an advantage.
Last trading session , USDINR started session with firm note at 73.16/17 then corrected till intraday lows at 72.9250/9350 levels. At lower levels pair got some traction then hit intraday high at 73.2975/73.3075 levels before finished at 73.25/26.
INTRADAY RANGE - 72.72 ( 73.09 - 73.48 ) 73.78
Asian indices were set for a strong session as global recovery prospects and the passage of a $1.9 U.S. trillion stimulus bill, shaking off a mixed Wall Street session after a big downturn in tech shares.
Despite the positive cues, investors remain conflicted over whether the stimulus will help global growth rebound faster from the COVID-19 downturn or cause the world's biggest economy to overheat and lead to runaway inflation.
The technology sector and other richly valued names have been highly susceptible to rising rates.
On Wall Street, the Dow advanced while the Nasdaq shed over 2%. That marked a more than 10% fall since its Feb. 12 closing high, confirming a correction in the index's value.
U.S. treasury yields advanced as investors continued to price in higher inflation and more upbeat prospects for the U.S. economy as it emerges from the coronavirus pandemic. The benchmark 10-year yield rose to 1.6029%, from 1.594% late on Monday.
Oil prices settled lower, retreating from a session peak above $70 a barrel after attacks on oil facilities in Saudi Arabia lifted prices that high for the first time since the COVID-19 pandemic began.
Gold has been on a slow-burn meltdown over the past month, getting swept up in a stock market rout triggered by surging bond yields and the dollar, despite its so-called standing as an inflation hedge.
The yellow metal’s departure from the path of inflation has been inexplicable to many of its faithful as Biden’s $1.9 trillion pandemic relief bill should land the United States with larger budget deficits and higher debt-to-GDP ratios going forth. These should logically weigh on the dollar and send investors toward gold. But the opposite is happening instead.
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