USDINR
On nervous Wednesday, The Domestic unit(Rupee) is most likely to commence the session with a weaker note between 76.70 – 76.80 levels as the greenback trading above a two-year high on concerns about slowing growth in China and expectations the Federal Reserve will aggressively hike rates boosted demand for the greenback.
THE CHINA GDP FEAR
The Wall Street Journal also on Tuesday reported that Chinese President Xi Jinping has told officials that he wants China’s economic growth to outpace the United States this year. That may be slower than previously expected. China last month targeted economic growth of around 5.5% this year.
The consensus for U.S. GDP growth this year is just barely above 3%, so that’s a huge, huge downgrade in terms of a growth target.
THE EURO
The euro added to losses after it was reported that Russian gas supplies under the Yamal contract to Poland have been halted. The euro fell 0.635% to $1.0642, the lowest since March 2020.
The single currency has been hurt by the economic impact of the war in Ukraine and by expectations the European Central Bank will move more slowly than the Fed in raising interest rates.
THE YEN
The Japanese yen also rebounded as investors speculated that the Japanese central bank or government may act to stabilize the currency, which last week hit a 20-year low against the dollar.
Japanese Prime Minister Fumio Kishida on Tuesday urged the central bank to maintain its ultra-loose monetary policy, brushing aside the idea of using interest rate hikes to prevent further declines in the yen.
THE OIL
Oil prices rose in early Asian trade on Wednesday, extending gains from the previous session after China's central bank said it would support its economy.
Meanwhile, Russia's Gazprom told Poland's PGNiG it will halt gas supplies along the Yamal pipeline from Wednesday morning, PGNiG said in a statement. Gazprom said Poland would need to begin making payments under a new scheme as of Tuesday.
USDINR INTRADAY TECHNICAL
Day Trend: - BUY ON DIP.
Weekly Trend: - HOLD
INTRADAY RANGE – 76.88 (76.78 – 76.57) 76.46
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