USDINR rallied to 70.29 y’day as Crude rallied further in mid day due to some European countries decision to suspend
Oil purchases from Russia due to quality issues. US actions on Iran, Venezuela and OPEC supply cuts have impacted
prices significantly. Indian CAD increases by USD 20 bn for every increase of USD 10/bbl in Crude prices. On the
positive side, spare capacity of 3.3 bn remains and can be tapped to keep a lid on prices if OPEC desires. US supply
has been increasing and is now the third largest producer. India can increase its sourcing from US to compensate for
drop in Iran purchases.
USDINR could trade in the 69.50-70.70 zone in coming days. Key support is at 69.75 and important resistances are at
70.30 and later at 70.70. Exporters can hedge between 70.30 and 70.70. Near term imports can be covered on decline to
US GDP is the key focus for the day.
-USDINR is at 70.10. Y’day’s close was 70.26.
-Indian Equity indices climb.
-Indian 10 year G-SEC yield is at 7.44%.
-USDINR 1 yr fwd premia is at 4.25%.
USDINR @ 70.10, EUR/USD 1.1137, GBP/USD @ 1.2902, USD/JPY @ 111.68, EUR/INR @ 78.08, GBP/INR @ 90.44, JPY/INR @ 62.76.
Gold@1280, WTI Crude @ 64.95, Nifty @ 11674 (+32), 10 Year G-SEC @ 7.44.