The Rupee likely to commence Wednesday session with weaker note between 72.55 - 72.65 levels as dollar approached a 4-month high as concerns over a third COVID-19 wave in Europe, potential U.S. tax hikes and escalating tensions between the West and China sapped risk appetite.
Last trading session (Tuesday), USDINR show some resilience near term support levels at 72.25 levels. Pair opened at 72.37/38 then hit intraday lows at 72.2675/2775, intraday pair was stuck in range between 72.4450-72.2675.
NOTE : - Importers must cover in 15-20 pips dip for short term.
INTRADAY RANGE - 72.24 ( 72.42 - 72.66 ) 72.81
GLOBAL OUTLOOKS
The euro edged toward a four-month trough below $1.1836 - trading as low as $1.1845 - after Germany extended a lock down and urged its citizens to stay at home over the Easter holiday.
Yellen was testifying to the House Financial Services Committee along with Federal Reserve Chair Jerome Powell, who reiterated that an expected near-term spike in inflation will be transitory. Treasury Secretary Janet Yellen told lawmakers that future tax hikes will be needed to pay for infrastructure projects and other public investments.
The index has had a disappointing run in March after five straight months of gains, as risk assets were earlier spooked by fears inflation will pick up at a faster-than-expected pace led by successful coronavirus vaccine rollouts and massive U.S. fiscal stimulus.
Human rights sanctions on China imposed by the United States, Europe and Britain, which prompted retaliatory sanctions from Beijing, are adding to market concerns.
The flight to safety hit commodity prices, though oil prices edged higher as investors looked for bargains.
Bitcoin languished below $54,000, less than two weeks since hitting a record high of $61,781.
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