USDINR opened 17 pips firm @ 71.00/02, its ended its Friday Session @ 71.17/18. We think any dip in USDINR must cover for short term, Rupee getting back-foot against greenback ahead of budget session as well as Oil prices hovering around $61 - $62 per barrel. Meanwhile, We had witnessed Indian Forex Reserve (USD) slip up to 396.68B Vs 397.35 on weekly.
INTRADAY RANGE - 70.63 ( 70.88 - 71.16 ) 71.32
On Friday rupee weakened by 10 pips to close at 71.17 against the greenback, amid increasing demand for the US Dollar from exporters and heavy selling in domestic equities.On a weekly-basis, however, the Indian currency registered a marginal gain of 2 pips. On Thursday, the rupee had gained 26 pips to end at 71.07 against the US dollar. Moody's Investors Service Friday said the steps announced by the government to aid MSMEs and the measures being planned to support farmers will increase the risk of fiscal slippage and push deficit to 3.4 per cent of GDP in the current financial year.
The dollar eased versus most of its peers on Monday as investors turned their attention to this week's Federal Reserve policy meeting, with traders wagering policymakers will signal a pause in their tightening cycle. The Federal Open Market Committee meets between Jan 29-30, and Chairman Jerome Powell is widely expected to acknowledge growing risks to the U.S. economy as global momentum weakens.
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