FX RATES AND USDINR FWDS :
Major developments:
USD is now at 83.06. USDINR opened at 83.06. Fwd premia – 1 year fwd premia is at 1.56% p.a.
-Indian CPI moderated to 4.87% in Oct. IIP also softened to 5.8% in Sep.
-Euro and Crosses climbed steeply as US inflation declined to 3.2% y/y.
-Fed could pause rate hikes, but market expects rate cut in Q1 2024.
-US 10 Year Yield declines to 4.44%, triggering surge in Global Equities.
-China injected USD 200 bn equivalent liquidity to shore up sluggish economy.
-USDINR could trade in 83-83.30 range, as RBI may intervene on both sides.
RBI rates
| Trade Date | 1 USD | 1 GBP | 1 EUR | 100 YEN |
| 13-Nov-23 | 83.32 | 101.95 | 89.06 | 54.9 |
| 10-Nov-23 | 83.35 | 101.93 | 88.91 | 55.06 |
-USDINR is at 83.06.Prior day’s close was 83.32.
-Indian Equity indices climb 1%.
-Indian 10 year G-SEC yield is at 7.23%.
-USDINR 1 yr fwd premia is at 1.56%.
USDINR @ 83.06, EUR/USD@ 1.0879, GBP/USD @ 1.2492, USD/JPY @ 150.90, EUR/INR @ 90.33, GBP/INR @ 103.78, JPY/INR @ 55.16. Gold@1967, Brent Crude @ 82.70, Nifty @ 19630(+187), 10 Year G-SEC @ 7.23%.
Hedging:
USDINR payables can be hedged on dipes to 83.10 . Eur receivables can be hedged now and on rally 89.70/90.10. GBPINR
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