USDINR
On Tuesday, USDINR is likely to commence session within range of 80.95 - 81.05 levels as India's annual retail inflation eased to 6.77% in October helped by slower rises in food prices and base effect, but remained above central bank's tolerance limit, strengthening views of lower rate hikes when it meets for policy review in December.
Annual retail inflation in October was higher than the 6.73% forecast by economists in a Reuters poll, and below 7.41% the previous month, data released by the National Statistics Office on Monday showed.
Food inflation, which accounts for nearly 40% of the CPI basket, rose 7.01% in October compared to 8.60% in September.
Month on month retail inflation rose 0.80% in October compared to the previous month while retail food inflation rose 1.08% - reflecting inflationary pressures in the economy.
USDINR TECHNICAL
Day Trend: - BUY FOR LONG TERM
Weekly Trend: - HOLD
INTRADAY RANGE – 82.28 (81.51 – 80.74) 79.97
THE DOLLAR
On Tuesday, The U.S. dollar gained against the yen and the euro but pulled back from its highs of the day with investors betting on a slower pace of Federal Reserve interest rate hikes going forward.
The index was higher after falling 4% last week, its biggest weekly drop since March 2020, after data showing U.S. consumer prices rose less than expected in October and prompted bets for slower hikes.
ECB BOARD
ECB board member Fabio Panetta “central bank must keep raising rates but needs to avoid overtightening, as doing so could destroy productive capacity and deepen an economic downturn”.
On Monday, Data had showed that euro zone industrial production rose much more than expected in September, and output for August was revised upwards too. Economists said that may be partly due to manufacturers front-loading production before energy-related disruptions this winter.
CABLE
The pound was down 0.56% at $1.1763, having risen 4% in the previous two sessions, touching on Friday its highest level since late August.
Sterling fell ahead of British Chancellor Jeremy Gaunt's autumn statement on Thursday when he is expected to set out tax rises and spending cuts.
THE BITCOIN
Bitcoin had fallen as far as $15,784 earlier on Monday before recovering somewhat. It was last up 2.07% at $16,600.
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