USDINR
On Wednesday the Domestic unit (Rupee) on back foot against greenback ahead of FED outcome overnight, USDINR most likely to commence session with firm note between 79.80 – 79.90 levels as dollar ascended near to a two-decade high, as investors geared up for another aggressive interest rate hike from the Federal Reserve, the main focus in a week packed with central bank meetings.
USDINR TECHNICAL
Day Trend: - BUY ON DIP
Weekly Trend: - HOLD
INTRADAY RANGE – 80.10 (79.95 – 79.71) 79.52
EXPECTATION FROM FOMC
The Fed started a two-day meeting, with rate futures traders pricing in an 83% chance of a 75 basis-point hike and a 17% probability of a 100 bps of tightening.
Providing additional support to the dollar, the U.S. two-year Treasury yield, which is sensitive to rate policy expectations, rose as high as 3.992%, its highest since November 2007.
SWEDEN
Sweden's central bank raised rates by a full percentage point. The rate hike by the Riksbank was larger than analysts had expected, causing the Swedish crown to briefly spike against the euro and dollar.
But it failed to retain that strength. The euro extended recent gains, climbing to a fresh six-month top of 10.8800 crowns. The euro was last up 0.62% at 10.8635. The dollar also climbed 0.59% to 10.8991 crowns.
BANK OF ENGLAND
The Bank of England will decide on rate policy on Thursday, and investors are split over whether a 50 or 75 bps hike is on the way.
ASIAN DEVELOPMENT BANK (ADM)
The ADB now expects the area's combined economy, which includes China and India, to grow 4.3% this year, after previously trimming the forecast to 4.6% in July from 5.2% in April.
On Wednesday, The Asian Development Bank (ADB) cut its growth forecasts for developing Asia for 2022 and 2023 amid mounting risks from increased central bank monetary tightening, the fallout from the war in Ukraine and COVID-19 lockdowns in China.
DON'T BE HURRY
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