USDINR seems start Tuesday session in firm note within range bound, The pair is near resistance levels, we can witness intraday volatility on USA voting day. Importers as well as exporters must cover there short term position with Option strategies.
On last trading session , In interbank forex market, USDINR opened at 74.42/74.43, down 32 pips over its last close. Domestic unit show some strength in early trade till 74.27/28 then again fall back at 74.4250 levels in closing against greenback.
India's factory activity expanded at its fastest pace in over a decade in October as demand and output continued to recover strongly from coronavirus-related disruptions, but firms cut more jobs, a private survey showed.
India’s unemployment rate in October rose to 6.98% from 6.67% in September, according to data released by the Centre for Monitoring Indian Economy (CMIE).
INTRADAY RANGE - 74.15 ( 74.32 - 74.52 ) 74.71
GLOBAL OUTLOOKS
Traders reduced net short dollar bets in the latest week, according to data from the Commodity Futures Trading Commission. But bets against the U.S. currency have outstripped those in favour for 31 weeks in a row and that is set to carry on.
Democratic challenger Joe Biden leads in national opinion polls and a win for him and his party taking the Senate would probably hurt the dollar, partly on expectations of a swift, large fiscal stimulus package.
President Donald Trump and Democratic rival Joe Biden made a last-ditch push for votes in battleground states on Monday as their campaigns prepared for post-election disputes that could prolong a divisive presidential election.
The euro and the yen both saw one-week rises in their one-week implied volatility to above 11%, the highest since April, with the yuan’s one-week volatility climbing above 12%, hovering near a five-year peak seen on Monday.
The pound gave up ground against the dollar to test a key level Monday as investors bet the Bank of England is likely to step up monetary policy easing following a second lockdown in England.
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