On Tuesday , The Rupee likely to start session with firm note between 73.15 - 73.22 levels as greenback was 0.13% lower at 90.660 in early Asian trading, after edging as high as 90.94 overnight for the first time since Dec. 21.
Importers must cover there January liabilities , Exporters can wait for Yellen testimony or near 73.40 - 73.45 can start building position for short term in tranches.
INTRADAY RANGE - 73.04 ( 73.13 - 73.29 ) 73.42
The greenback has also been helped recently by an unwinding of bearish bets, with data showing that hedge funds piled up the biggest net short position since May 2011 in the week ended Jan. 12. Such large positions suggest that traders would be relatively more inclined to reduce their positions than add to already big bets.
Investors continue digesting positive economic data from China and there are hopes that it could underpin growth in the region amid the threat of COVID-19 lockdowns lengthening the road to economic recovery in other regions.
Global shares are losing steam after starting 2021 on a strong note, with investors looking to the upcoming earnings season. Biden’s proposal is also widely expected to face Congressional opposition from Republicans and could cause some taxes to rise.
Yellen will testify before the Senate Finance Committee later in the day as part of her Senate confirmation hearing. The hearing is likely to touch on topics ranging from foreign-exchange policy to taxes and serve as the first congressional forum where lawmakers will vet the $1.9 trillion COVID-19 relief plan unveiled by President-elect Joe Biden during the past week.
In her testimony, Yellen is reportedly expected to affirm the U.S.' commitment to market-determined exchange rates and indicate that the country doesn’t seek a weaker dollar for competitive advantage.
Comments