USDINR
On Wednesday, The Rupee is most likely to commence session with a firm not between 77.35 – 77.45 levels against the greenback as the dollar fell for a third straight day, pulling back from a two-decade high against a basket of major peers, as an uptick in investors' appetite for riskier bets diminished the U.S. currency's appeal.
The Rupee weakened to an all-time low at 77.7925/8025 levels against the dollar in opening trade on Tuesday tracking persistent foreign fund outflows and elevated global crude oil prices. But letter part of the day domestic unit finds some relief as the greenback slips from 20 yr. higher level, as well as Indian indices, got strong buying sentiment.
THE DOLLAR
The dollar index pared losses after Federal Reserve chair Jerome Powell said at a Wall Street Journal event on Tuesday, that the Fed will "keep pushing" to tighten U.S. monetary policy until it is clear inflation is declining.
THE EURO
The euro was up 1.2% at $1.0549, extending its rebound from a five-year low touched last week, and putting more distance between the common currency and parity with the U.S. dollar. The currency, which benefited from ECB policymaker Francois Villeroy de Galhau saying on Monday that a weak euro could threaten price stability in the currency bloc, rose after hawkish comments from Dutch central bank chief Klaas Knot. Knot said that not only was the European Central Bank set to hike rates by 25 basis points in July, but it was also ready to consider a bigger rise if inflation proved higher than expected.
THE OIL
Oil prices slumped 2% as Reuters reported that the United States could ease some restrictions on Venezuela's government, raising hopes that the market could see some additional supplies.
Prices also fell after Federal Reserve Chairman Jerome Powell warned the economy could be hurt by attempts to reduce inflation.
USDINR TECHNICAL
Day Trend: - BUY ON DIP (Short Term)
Weekly Trend: - HOLD
INTRADAY RANGE – 77.88 (77.62 – 77.35) 77.06
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