USDINR
On Wednesday, USDINR is most likely to breach week-long range-bound at an upper side of 77.70 levels, we are expecting the pair to commence between 77.75 – 77.85 levels as the dollar strengthened across the board as Treasury yields climbed and worries over a further acceleration in global inflation depressed investors' risk appetite.
India's economic growth slowed to the lowest in a year in the first three months of 2022, hit by weakening consumer demand amid soaring prices that could make the central bank's task of taming inflation without harming growth more difficult.
US TREASURY YIELDS
On Tuesday, U.S. Treasury yields climbed, a day after Fed Governor Christopher Waller said the Fed should be prepared to raise interest rates by a half percentage point at every meeting from now on until inflation is decisively curbed.
THE INFLATION
Inflation in the 19 countries sharing the euro accelerated to 8.1% in May from 7.4% in April, beating expectations for 7.7% as price growth continued to broaden, indicating that it is no longer just energy pulling up the headline figure.
THE OPEC
The Wall Street Journal reported Some OPEC members are exploring the idea of suspending Russia’s participation in the alliance’s oil-production deal as Western sanctions and a partial European ban begin to undercut Moscow’s ability to pump more.
USDINR TECHNICAL
Day Trend: - BUY ON DIP (Short Term)
Weekly Trend: - HOLD
INTRADAY RANGE – 78.09 (77.83 – 77.65) 77.56
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