USDINR
Despite the dollar index correct convincingly the domestic unit (Rupee) underperforms on the higher oil prices. We are expecting USDINR to commence the Wednesday session with a mild firm note between 77.50 -77.60 levels as the U.S. dollar index hit nearly a one-month low on Tuesday after European Central Bank President Christine Lagarde said eurozone interest rates will likely be in positive territory by the end of the third quarter, giving the euro a boost.
EUROPE
Lagarde's comments implied an increase of at least 50 basis points to the ECB deposit rate and fuelled speculation of bigger hikes this summer to fight a surge in inflation tied to rising energy prices caused by the war in Ukraine and massive public-sector stimulus after the onset of the coronavirus pandemic.
Over the past seven trading sessions, the single currency has rebounded 3.7% after having fallen to its lowest level since January 2017, at $1.0348, earlier this month.
STERLING
The Sterling fell against the dollar after PMI data showed that momentum in Britain's private sector slowed much more than expected this month, adding to recession worries as inflation pressures ratcheted higher. The British pound was down 0.48% at $1.2524.
THE OIL
On Wednesday, Oil prices rose in early Asian trade, boosted by tight supplies and the prospect of rising demand from the upcoming start of the U.S. summer driving season.
USDINR TECHNICAL
Day Trend: - BUY ON DIP (Short Term)
Weekly Trend: - HOLD
INTRADAY RANGE – 77.81 (77.65 – 77.49) 77.33
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