On Wednesday , We expect USDINR start with range bound despite greenback holding onto gains from the previous session on the back of positive economic data from the U.S. and concerns over the COVID-19 outbreak in Europe.
Yesterday , In interbank market, the rupee opened on a weak note at 73.49/50 and fell further to a low of 73.6475/6575 as stock markets continued to fall for the fourth straight day. The rupee closed at 73.5850 against the greenback, registering a fall of 20 pips over its last close of 73.38 on Monday.
U.S. private equity firm KKR & Co Inc will invest 55.50 billion rupees ($755.09 million) in Reliance Industries Ltd's retail arm, giving the unit a pre-money valuation of 4.21 trillion rupees, the Indian conglomerate said on Wednesday.
China and India have agreed to stop sending more troops to a Himalayan flashpoint along their contested border and to avoid any actions that might complicate the tense situation there, the two countries said on Tuesday.
INTRADAY RANGE - 73.05 ( 73.36 - 73.72 ) 73.95
GLOBAL OUTLOOKS
U.S. President Donald Trump told the United Nations General Assembly on Tuesday that China must be held accountable for having "unleashed" COVID-19 on the world, prompting Beijing to accuse him of "lies" and abusing the U.N. platform to provoke confrontation.
Many euro zone countries have reintroduced travel restrictions, forcing airlines to scale back passenger services after a relatively quick run up over the summer.
The GBP/USD pair inched down 0.04% to 1.2723, after touching lows not seen since late July, after U.K. Prime Minister Boris Johnson on Tuesday announced new restrictive measures. The measures are likely to be in place over the next six months, with Johnson urging Britons to work from home.
The new restrictions include a curfew on pubs and a tightening of the 'rule of six,' which limits social gatherings up to a maximum of six people. The measures are likely to remain in place for six months, Johnson suggested.
On Tuesday the greenback was bolstered by data showing U.S. home sales surged to their highest level in nearly 14 years in August, but comments from a prominent Federal Reserve official sent mixed signals.
The U.S. economy risks a longer, slower recovery and "recessionary dynamics" if Congress fails to pass an additional fiscal stimulus package, Chicago Federal Reserve President Charles Evans said on Tuesday.
Europe has completely changed, because the economic recovery is stalling and there is a second wave of the virus.
The New Zealand dollar is in focus before a meeting later on Wednesday where the country's central bank is expected to leave its official cash rate at record lows and update its assessment of the economic outlook.
The Reserve Bank of New Zealand is expected to hold off on further stimulus but traders want to see how the central bank assesses the impact of the coronavirus.
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