USDINR opened at 70.42/43 with mild 3 pips weaker against Thursday ended at 70.39/40 levels. In present scenario USDINR correlated with Oil price , so high trade deficit of Indian economy remains the biggest concern for the rupee. But could get some relief from Asian Peer that trading firm against greenback on FED Chair comment.
INTRADAY RANGE - 69.88(70.22-70.65)70.87
On Thursday , the rupee opened at par at 70.46 a dollar against its previous close of 70.46. The local unit moved in a range of 70.6575 to 70.32, before finally ending at 70.39/40, showing a gain of 7 pips. Overall the rupee is expected to be driven by global factors and the upcoming political factors in the domestic market. Near term the rupee is expected to trade in 69.50 to 72 band.
The dollar held a soft tone versus its peers on Friday, on rising expectations the U.S. Federal Reserve may hit the pause button on monetary tightening if the economy slows this year. Fed Chairman Jerome Powell reiterated on Thursday the U.S. central bank has the ability to be patient on monetary policy given that inflation remains stable. Markets are now pricing in no further rate hikes by the Fed this year. Fed Vice Chair Richard Clarida also struck a dovish tone, further cementing the central bank's willingness to remain patient on the issue of raising rates.
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