USDINR start Wednesday session with handsome gain of 27 pips @ 71.17/18 against Tuesday closing was 71.44/45. The U.S dollar trickled lowered against its rivals as data showed U.S. existing home sales in December fell to their lowest level in more three years. We think there is some tactical upside for EUR/USD amid the broad dollar downdraft. The dollar was also pressured by strength in the yen on the back of a rise in safe-haven demand
INTRADAY RANGE - 70.85 ( 71.03 - 71.28 ) 71.44
On Tuesday USDINR slid by 16 pips -- its third straight session of loss -- to close at 71.44 amid strengthening of the greenback and heavy selling in domestic equities. Concerns over slowing global growth and foreign capital outflows weighed on the local unit. The rupee has now lost 41 pips in three days. Rupee continued to trend down for the third day on global growth concerns. IMF predicted global economy will grow at the weakest pace in three years in 2019 and warned fresh trade tensions would spell further trouble.
Currency markets have been whipsawed over recent weeks as trader tried to come to terms with range of issues from Brexit to slowing global growth and the outlook for major central banks. Slackening global demand is one of the factors that is expected to see the Bank of Japan cut its inflation forecasts and stick to its ultra-easy policy at its rate review later in the day.
Comments