FX WEEKLY UPDATE

WEEKLY SYNOPSIS: 13/08/2021

Currency Map:

Currency Pairs WEEKLY CLOSE PRIOR WEEK CLOSE % change
USD/INR 74.25 74.16  0.12
EUR/INR 87.23 87.58 -0.39
GBP/INR 102.49 103.16 -0.64
JPY/INR 67.32 67.52 -0.29

Brent Crude closed at USD 70.25 VS prior week close of USD 70.30. Gold closed at USD 1781.Nifty closed at 16529 vs prior week close of 16238. 10 Year G-SEC Yield closed at 6.23%.

Major developments: USDINR traded in the 74.21-74.48 range and closed at 74.25 as against prior week close of 74.16. Rupee declined 0.12% w/w. EUR declined 0.39% and GBP declined 0.64% w/w against Rupee. Indian benchmark Equity index climbed 1.8% w/w. 10 Year G-SEC Yield closed at 6.23%. 1 year fwd premia is at 4.25% p.a. Forex reserves climbed to USD 624 bn. In August, till date,, FII’S have net bought Rs 4353 cr in Equity segment and have net bought Rs 78 cr of debt. In this financial year, FII’S have net sold Rs 2662 Cr worth of Indian Equities and have sold Rs 4809 Cr worth of Indian debt. In 2020-21 financial Year, FII’S nett bought Rs 2,74,203 Cr of Equities and have sold Rs  42820 Cr in debt.

On data front, July CPI climbed 5.59%. In June, CPI was at 6.26%. Food price inflation slipped month-on-month to 3.96 per cent in July, from 5.15 per cent in June. RBI, in its latest MPC meeting, raised the CPI inflation forecast at 5.7 per cent from 5.1 per cent estimated earlier during the ongoing financial year 2021-22. Industrial production climbed 13.6% y/y and manufacturing output climbed 13% y/y.

Indian Equity indices soared higher and made record highs.

USDINR could trade in the 74.05-74.60 range.                   

Global developments: Euro and crosses rebounded on Friday after steep decline in early part of the week. US July CPI eased worries over unabated inflation and supported Fed’s view that transitory inflation due to supply side issues will eventually ease.

All eyes are on Delta variant which has caused closure of busiest Chinese port, threatening supply disruptions again. US labor market is tightening and reports suggest higher job openings in almost all sectors.

US Equity markets continued their upward ascent, even as Treasury yields stabilised.

Focus is now on last meeting FOMC minutes, US retail sales and Fed Chairman’s speech at Jackson symposium.

Currency range forecast: USDINR:74.05/73.90 (support)-74.57(Resistance), EURINR: 87/86.35(support), 88(Resistance), GBPINR: 102(support), 104- Resistance, JPYINR: 66-68.50.                         

 

Suggestion: Cover USD import payables. Receivables can be covered at 74.60. EURINR receivables can be 

 
hedged closer to 88.. GBPINR receivables hedging can be done at around 104.  

For all your investment needs feel free to reach us.

Give us Missed Call us on 90037 90027 . For Support : 044-40329999

FX MORNING UPDATE

FX MORNING UPDATE 

FX MORNING UPDATE  

Leave a reply:

Your email address will not be published.

Site Footer

© 2018 GOODWILL - ALL RIGHTS RESERVED