USDINR
On Wednesday, USDINR likely to commence within range between 82.75-82.85 ahead of RBI policy as markets see-sawed between optimism that the Reserve Bank of India will pause rate hikes after today.
The Indian rupee, one of the worst-performing Asian currencies last year, is forecast to strengthen very little in coming months and still trade above the 80 per dollar mark a year from now, a Reuter’s poll of foreign exchange strategists found.
India is the fastest-growing major economy, with growth slowing but still expected at 6.0% in fiscal 2023/24, that relative strength is not reflected in the currency. Underlying economic problems, including a reliance on imported oil and persistent unemployment, continue to hold it back.
USDINR TECHNICAL
Day Trend: - WAIT FOR RBI POLICY
Weekly Trend: - HOLD
INTRADAY RANGE – 83.05 (82.86 – 82.68) 82.49
THE DOLLAR
The dollar fell from one-month highs on Tuesday after U.S. Federal Reserve Chair Jerome Powell doubled down on statements last week that disinflation has started, saying he expects significant declines in inflation this year.
U.S. interest-rate futures show that markets are expecting the Fed funds rate to peak just above 5.1% by June, compared with expectations of a peak below 5% prior to Friday's jobs report.
THE USDJPY
The dollar dropped 1.2% versus the yen to 131.07 yen, after rising to a one-month peak on Monday. The yen was hit by a Nikkei report that said Japan's government has sounded out Bank of Japan (BOJ) Deputy Governor Masayoshi Amamiya to succeed incumbent Haruhiko Kuroda as central bank governor.
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