USDINR
On Wednesday, USDINR is most likely to commence near an all-time high at 79.30 – 79.40 levels as the dollar gains support from a strong rebound in the U.S. 10-year Treasury yields.
On Tuesday, The Indian rupee hit a record low at 79.37/38 levels against the U.S. dollar as concerns of a wider current account deficit came to the forefront after the country's trade deficit hit an all-time high in June. Data late on Monday showed India's June trade deficit widened to a record high of $25.63 billion, following a rise in crude oil and coal imports, from $9.61 billion a year earlier.
Analysts and economists are expecting the country's current account deficit to widen to around 3.2% of the GDP in the fiscal year 2023 compared with 1.2% in 2022.
YIELDS
U.S. 10-year Treasury yields pushed past 2.959% after reopening from a holiday, from the lowest since May at 2.7910% on Friday.
THE OIL
On Tuesday, Oil plummeted about 9% in the biggest daily drop since March on growing fears of a global recession and lockdowns in China that could slash demand.
THE EURO
The euro tumbled to a two-decade low as data showed business growth across the eurozone slowed further last month, with forward-looking indicators suggesting the region could slip into decline this quarter as the cost of living crisis keeps consumers wary.
USDINR TECHNICAL
Day Trend: - BUY ON DIP (Short Term)
Weekly Trend: - HOLD
INTRADAY RANGE – 79.93 (79.56 – 79.19) 78.82
Comments