Wednesday, April 10, 2019

INR update: Inflows keep USDINR moderately offered



IMF revised global growth lower on expected lines but this along with renewed trade tensions between the US and EU would keep global risk sentiments slightly negative. Today we have the ECB policy announcement which could finally lead to a break in EURUSD on the lower side below its support zone of 1.1175-1.12, given the recent run of negative data from the EU and trade tensions the ECB could be more accommodative and sooner than what the market expects. US CPI and US FOMC minutes today, on the other hand would give more clarity on the FED’s next rate action.

USDINR 1m NDF is trading 7p right since the last 3 days. The price action yesterday was driven by some inflow. News reports suggests that there could be more bond issuance/stake sale/ FPI related inflows in the pipeline between now and end April which should keep USDINR offered. I would continue to expect a  range of 69.50-68.50 for the rest of April. For the day CMP 69.17, Range 69.25-69.00.


No comments:

Post a Comment