USDINR opened 7 pips firm @ 69.07/08 against Thursday finished at 69.1550/1650.
We are expecting USDINR firmness to be short-lived amid rising uncertainty around the national election and other factors such as a steady increase in oil prices and a slowdown in economic growth, dampening the currency's outlook.
RBI policy hasn't been friendly for the INR since last year.. Now they are taking advantage of the positive emerging market sentiment and cutting rates as the government wants the RBI to do and a rate cut is not friendly for the currency.
INTRADAY RANGE - 68.55 ( 68.88 -69.25 ) 69.45
On Thursday, The rupee plunge further by 70 pips against the US dollar after the Reserve Bank of India cut the repo rate by 25 basis points.
The 10-year benchmark government bond yield climbed by 0.70 per cent. The central bank cut the retail inflation forecast to 2.9-3 per cent for the first half of current fiscal, mainly due to lower food and fuel prices as well as expectation of a normal rainy season.
Comentarios