The Rupee likely to commence Wednesday session with weaker note between 73.45/55 levels despite as greenbacks softened to a 2 week low against a basket of currencies on Wednesday after U.S. bond yields declined as traders rolled back aggressive expectations that the Federal Reserve will tighten its policy earlier than pledged.
USDINR have reached near term resistance level at 73.50 / 73.60, due increasing Covid19 cases pair getting bids from lower levels. Last session , pair found firm bids near opening levels 73.24/25 , intraday range was 72.2075-72.4375 before finished at 73.4275/73.4375.
INTRADAY RANGE - 73.10 ( 73.33 -73.56) 73.79
GLOBAL OUTLOOKS
The dollar's decline came as investors re-calibrated their expectations that the Federal Reserve will tighten its policy earlier than it has suggested.
Financial markets have expected accelerating U.S. economic growth and inflation could force the Fed to abandon its pledge earlier, with interest rate futures pricing in a rate hike as early as late 2022 earlier this week.
The five-year Treasury yield is now seen as a major barometer of how much faith investors have in the Federal Reserve's pledge that it does not expect to raise interest rates until 2024.
The five-year U.S. Treasury yields, however, dropped sharply to 0.874% after hitting a 14-month high of 0.988% on Monday.
Crude oil prices rose on the prospects for stronger global economic growth amid increased COVID-19 vaccinations and a report showing that crude inventories in the United States, the world's biggest fuel consumer, fell in the week-ended April 2.
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