Indian rupee halted three days gains on Thursday with spot rupee fell against the dollar on importers buying - HDFC Securities
* Indian rupee halted three days gains on Thursday with spot rupee fell against the dollar on importers buying.
* The spot rupee depreciated on LEF exposures and rally in global crude oil prices. RBI on Monday with a view to reduce concentration on risk and align them with the global norms has modified the guidelines on large exposure for banks. Crude oil prices hit 13 month highs on slower supply fears which increased dollar buying from importers.
* The Reserve Bank of India’s move allowing lenders to deploy more dollars abroad led to a sharp drop in rupee forward premiums from a four-year high, making hedging cheaper.
* The six-month annualized forward premium was down 32 basis points to 5.2497%, while the 1- year was down 28 basis points to 5.0792% on Thursday.
* US Equity indices witnessed sharp fall as a sharp spike in U.S. government bond yields on inflation fears exacerbated fears about high-valued growth sectors and triggered selling across technology shares. The Dow Jones Industrial Average fell 1.76%, or 561 points. The S&P 500 was down 2.43%, while the Nasdaq Composite fell 3.52%.
* On data perspective, India GDP, Fiscal deficit and eight core infra data to be watched today.
* USDINR February futures halted decline on Thursday witnessing recovery from the support levels of 72.50.
* The oversold indicators triggered some short recovery in the pair with mean averaging.
* The short term momentum oscillators are showing bearish trend for the pair with RSI at 30 while 20 day moving average resistance stands at 72.87. * We expect the pair to trade sideways to up for the day with support at 72.50.
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