USDINR
It seems country central bank losing control on currency depreciation; it seems they are not taking action when needed. The domestic unit (Rupee) is most likely to commence between 81.60 – 81.70 levels as greenback stay above 20 year high and move forward.
Economists said “The Reserve Bank of India may have to resort to tried and tested measures to shore up its foreign exchange reserves, including encouraging non-resident Indians to deposit more funds, as it looks to stabilise a steadily declining rupee”.
The central bank may need to think of ways to bulk up its forex reserves, should the pool shrink to near $500 billion in the coming months.
The central bank should explore other options such as those in 2013 when the rupee came under pressure due to the U.S. Federal Reserve announcing plans to taper bond purchases.
USDINR TECHNICAL
Day Trend: - BUY ON DIP
Weekly Trend: - HOLD
INTRADAY RANGE – 82.11 (81.77 – 81.43) 81.09
THE POUND
The prospect of aggressive rate hikes, the U.K. chancellor Kwasi Kwarteng's promise to unveil a medium-term fiscal plan on Nov. 23 to show how the U.K. will fund its spending plan that includes the biggest tax cuts in over 50 years, also steadied the currency.
The fiscal plan will set out further details on the government’s fiscal rules, including ensuring that debt falls as a share of GDP in the medium-term.
The U.K. government's new package of unfunded tax cuts will most likely require higher interest rates.
HAPPY TRADING
Comments