On Wednesday , USDINR can witness volatile session as Indo-china border tension, dollar bounced off two-year lows as U.S. manufacturing activity accelerated to a nearly two-year high in August amid a surge in new orders, with the reading from the Institute for Supply Management highest level since November 2018. Yesterday , USDINR traded between 73.25 - 72.74 levels.
India's central bank appears to have stopped trying to rein in the rupee to help exports, letting the currency drift to a six-month high and raising expectations it will gain further, analysts and market participants said.
An Indian army statement on Monday alleged that China had carried out "provocative military movements" in the border area overnight from Saturday to Sunday. Indian troops pre-empted Chinese army's activity on the Pangong Tso Lake in Ladakh, part of which was transgressed by the Chinese soldiers in May, the statement said, adding that Indian troops took steps to thwart the Chinese attempt to "unilaterally change" facts on the ground.
In response, the Chinese foreign ministy rejected the accusations, while China's People's Liberation Army regional command later alleged that India was "seriously violating China's territorial sovereignty" with its operation staged on Monday and demanded that Indian troops withdraw.
INTRADAY RANGE - 72.17 ( 72.68 - 73.19 ) 73.70
GLOBAL HIGHLIGHTS
Australia's second-quarter GDP shrinks (-7%) at record pace as corona-virus pushes country into recession.
White House slams WHO over criticism of push for COVID-19 vaccine.
Europe’s common currency advanced as much as 0.6% to $1.2011 before settling back to around $1.1905. Investors remain optimistic on its outlook, with speculators holding a record bullish position. In contrast, the Bloomberg Dollar Spot Index touched a two-year low.
The British pound started the trading week with huge gains of 2.0% and the upswing has continued on Tuesday. Currently, GBP/USD is trading at 1.3378, - 0.01% on the day.
Oil was up on Wednesday morning in Asia after the American Petroleum Institute (API) announced a larger-than expected draw in crude oil inventory.
The price of Bitcoin has hit $12,000 again, and traders are becoming more optimistic that the digital asset will hold the key level this time.
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