USDINR
Domestic Unit (Rupee) enjoying two day Winning Street (82.93 to 81.91) against greenback, we are expecting The Rupee maintain winning momentum on opening ground on Wednesday session between 81.50 – 81.60 levels as dollar slid as rising German bond yields strengthened the euro, but a strong reading of the consumer price index later this week could reverse the currency's slide.
The interest rate differential with other currencies favors dollar strength, as do potentially severe recession risks abroad and China's ongoing struggles with COVID restrictions.
India's central bank should allow rupee to depreciate gradually and use foreign exchange reserves judiciously, the government's chief economic adviser V. Anantha Nageswaran on Monday. Nageswaran comment on the rupee and foreign exchange reserves is the first official government comment since concerns about dwindling currency reserves emerged earlier this year.
Day Trend: - BUY
Weekly Trend: - HOLD
INTRADAY RANGE – 82.27(81.85 – 81.44)81.02
THE USA MID TERM
Traders kept an eye on U.S. midterm elections, whose outcome may usher in an era of divided government in Washington that would likely foil big social spending plans by Democrats.
THE GERMAN BONDS
German bond yields weakened the dollar on expectations of further European Central Bank tightening, which cut the spread with Treasury yields, said Marc Chandler, chief market speculation at Bannockburn Global Forex.
THE GOLD
Gold prices jumped to a one-month high, benefiting from resurgent safe haven demand and a weakening dollar as investors awaited the results of the U.S. midterm elections, with broader metal prices also gaining.
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