USDINR
USDINR getting bids in lower levels, we are expecting pair is most likely to commence Tuesday session within 79.65 – 79.75 levels as dollar bulls are unlikely to get toppled anytime soon as the Federal Reserve will likely follow up its widely expected interest rate hike with hawkish remarks this week that may force traders to rethink how high rates could go before peaking.
India's central bank is using up its foreign exchange reserves at a quicker pace than during the taper-tantrum period in 2013 as it tries to prevent an overshoot in the rupee, but a larger pool of reserves may allow it to support the currency for some more time.
USDINR TECHNICAL
Day Trend: - BUY ON DIP
Weekly Trend: - HOLD
INTRADAY RANGE – 80.04 (79.84 – 79.63) 79.43
THE FED AND INFLATION
The Federal Open Market Committee, the Fed’s rate-setting arm, will kick off a two-day meeting Tuesday that is expected to culminate in a decision to raise the benchmark rate by 0.75%.
The FED decision will be accompanied by a fresh set of projections on inflation, economic growth and the future path of interest rates that will collectively indicate a more hawkish path to restrictive territory.
THE YUAN
The Yuan fell 0.4% to an over two-year low of 7.011 to the dollar, its second day spent in breach of the psychologically important 7 level. The drop came despite an extremely hawkish midpoint fix by the central bank.
China’s Yuan sank further below key levels after more monetary easing in the country, while broader Asian currencies tumbled in anticipation of a Federal Reserve meeting later this week.
KEEP CALM 😌 AND CARRY ON
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