Fundamental Aspect:-
Foreign inflows into Indian equities and debt markets have surged, with $3.65 billion pouring in this month as of March 15. That compares with inflows of $1.58 billion in February and $788 million outflows in January.
RBI plans to swap rupees for dollars for a total of $5 billion with domestic banks which is likely to help achieve its twin objectives of pushing interest rates down while also preventing a sharp appreciation in the rupee.
Investors are bullish on the Indian rupee for the first time in nearly a year, a Reuters poll showed last week, as a recent surge in popularity of the country's ruling party is expected to augur well for its alliance in the upcoming national elections.
The forex reserves stood at $402.02 Vs $401.77 billion in the reporting week.
Technical Aspect:-
On Daily chart RSI is 21% is breach oversold trajectory.
USDINR trading well below from 50DMA (70.77) & 200DMA (70.78).
USDINR positive correlation with USDSEK(0.98) & USDILS(0.94)
USDINR negative correlation with AUDJPY(-0.91) $ EURJPY(-0.94)
WEEKLY PROJECTION – 69.75 (69.50 – 68.25) 67.83
USDINR TREND - BEARISH TILL HOLD 69.45
Events effect rupee this week:-
Federal Reserve Rate Decision (Wednesday)
Another Brexit Vote
Bank of England Policy Announcement (Thursday)
Brent Oil Price physiological $68 levels
VIX approaching to lowest levels
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