Rupee to gain following stronger Chinese Yuan - HDFC Securities
* The rupee settled lower against the American dollar amid expectation of rise in inflation following higher crude oil duties and gold price, and persisting worries over the rising count of COVID-19 cases globally, which has cast a shadow over hope of a relatively quick economic rebound. India rupee closed below 75.02 marking third day of weakens.
* Rupee 1-month volatility retreated for a second day to 5.765%.
* Global funds sold net 9.95b rupees ($132.63m) of Indian stocks on Wednesday.
* The trend for the rupee remain positive till it closes below 75.50.
* Risky assets across Asia were mostly higher today as investors continued to place faith in policy support and shrugged off simmering tension between US and China.
* Asian Currencies gained after the greenback slumped overnight amid a surge in risk appetite.
* The Chinese Yuan’s gain beyond 7 per dollar, first time since March, reflects rising corporate demand that may underpin further appreciation. Asian currencies expected to follow the Chinese path in today’s trade.
* The U.S. dollar weakened against its major peers, with the ICE Dollar Index dropping 0.5% on day to 96.43 on Wednesday.
* Elsewhere, Oil gained as gasoline demand showed signs of improving, though crude inventories are holding near a record high. Gold for August delivery rose for a fourth day to $1,820.60 an ounce, with intraday spot prices hitting the highest since September 2011.
USDINR July Futures :
* USDINR July futures gained for the third day in row following stronger dollar index. However, it is still far from the 21 DEMA.
* Momentum oscillators and indicators on hourly chart turned weak indicating profit booking in a day or two.
* The pair is having resistance at 75.45 and support at 74.98.
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