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WEDNESDAY RUPEE & OTHER FX OUTLOOKS:- RUPEE WEAK, YEN FALL, EURO UP!!

USDINR

On Wednesday, The Domestic Unit (Rupee) is Likely to commence the session with weaker notes between 78.05 – 78.15 levels against the greenback as DXY is trading in a narrow range of 104.40-104.45 ahead of Federal Reserve (Fed) chair Jerome Powell’s testimony. The FX domain is much quiet as investors are expecting a hawkish stance on July monetary policy from Fed Powell in his testimony.

  • On Tuesday, Indian shares posted their best session in three weeks, lifted by sharp gains in metal and technology stocks as investors hunted for bargains in beaten-down sectors following last week's brutal sell-off.

THE YEN

The yen dropped to a new 24-year low of 136.45 per dollar, extending losses that have already seen it shed more than 18% of its value versus the greenback this year.

  • Overnight, The Japanese yen plunged against the U.S. dollar to its lowest since October 1998, as the Bank of Japan's ultra-loose monetary policy was in stark contrast to an aggressive Federal Reserve determined to stamp out soaring inflation.

THE DOLLAR INDEX

The dollar in range after data showed the U.S. existing home sales tumbled to a two-year low in May as prices jumped to a record high and mortgage rates increased further, pushing out entry-level buyers from the market.


THE EURO

The euro was firmer at $1.0527, up 0.19%. It rose after European Central Bank chief economist Philip Lane said the ECB will raise rates by 25 basis points at its July meeting, but the size of its September hike is still to be decided, suggesting a larger 50 basis points hike is possible.


USDINR TECHNICAL

Day Trend: - BUY ON DIP (Short Term)

Weekly Trend: - HOLD

INTRADAY RANGE – 78.32 (78.18 – 78.05) 77.91

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