After long weekend USDINR likely to start Tuesday session with in range of 73.90 - 74.00 levels, Despite Dollar index near NOV'2017 lowest levels. USDINR stand tall, finding some flows near 73.70 - 73.80 zone. We are expecting intraday Rupee trying to deliver strength but near resistance levels it will again fall back.
Prime Minister Narendra Modi on Monday resisted calls for the repeal of farm reforms that have ignited the biggest protests by farmers in years around the national capital, saying they were being misled and that deregulation would benefit them.
The gross domestic product (GDP) growth in Q2 at -7.5 per cent was sharply lower than the 4.4 per cent growth in Q2 of the previous financial year. However, the contraction was less severe than the -23.9 per cent decline in Q1 of this financial year.
INTRADAY RANGE - 73.61 ( 73.82 - 74.19 ) 74.45
GLOBAL HIGHLIGHTS
Dollar was down on Tuesday morning in Asia, starting the new month on a lower note even after closing its worst month since July in November. Giving the dollar a boost, however, was the expectation of more monetary easing measures from the U.S. Federal Reserve.
Fed Chairman Jerome Powell will testify before Congress later in the day and on Wednesday, ahead of the central bank’s policy meeting on Dec. 15 and 16. Both events will be closely watched by investors for clues on next moves.
The Reserve Bank of Australia will hand down its last policy decision for 2020 later in the day, although it is widely expected that no changes will be made.
The Antipodean risk currencies were reversing some of Monday’s losses but remained just below the milestone peaks seen on Monday.
U.K. and the European Union (EU) will reach a Brexit deal before the end of the month boosting the pound. Both sides warned the other that time was of the essence and talks between EU chief negotiator Michel Barnier and U.K. chief negotiator David Frost continue. The EU team are expected to stay in London for two or three more days for the talks.
EUR/USD Exchange Rate Falls as Outlook for German Economy Dims The Euro to US Dollar (EUR/USD) exchange rate dipped today, with the pairing currently trading around $1.194. The Euro struggled today following the release of the flash German Harmonised Index of Consumer Prices data for November, which fell below forecasts to -0.7%.
Oil prices jumped 27% or more for November, their biggest leap since the disaster of spring 2020 when crude prices tumbled into negative territory for the first time in history.
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