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Traders await RBI minutes for policy cues - HDFC Securities

Rupee expected to open slightly lower but as the domestic equities rebound along with other Asian markets we could see appreciation as the day progresses. The trend for rupee remains down following surge in virus cases and some foreign fund outflow in expectation of weaker economic activities after many states implemented strict restriction in movement of people.

On Tuesday, spot USDINR closed at 74.88 remained unchanged even after stronger dollar and weaker domestic equites. Financial markets were closed on Wednesday on account of Ram Navami. We could see higher opening for USDINR to catch-up the yesterday’s movement. Technically, spot USDINR is having resistance at 75.50 followed by 75.70 while support has been shifted to 75 and 74.50 level.

Forex market focus will remain domestic side on number of cases of virus infection, vaccination progress and economic impact of on overall growth. All eyes will be on minutes of the central bank’s April meeting for cues on the direction of the monetary policy after another round of pandemic-induced restrictions across the nation threaten to weigh on a nascent economic recovery

Asia stocks are poised to bounce after U.S. equities snapped a two-day drop on a rally in companies that stand to benefit the most from an economic revival. The dollar fell, while Treasuries stabilized.

The dollar fell, resuming a decline after Tuesday’s gains broke a six-day losing streak for the global reserve currency. U.S. Treasury yields rose slightly.

Euro fell on Wednesday as a poll showed the German Green party leading Chancellor Angela Merkel’s conservative bloc ahead of parliamentary elections later this year. The focus now will be on European Central Bank (ECB) monetary policy meeting due today, where any positive comments about the economic outlook or hints of tapering bond purchases are expected may push Euro higher

USDINR

USDINR April futures expected to open higher following forward markets

The pair is forming higher top higher bottom on daily and weekly scale.

It has been trading well above major moving averages.

Momentum oscillators and indicators are also well placed for continuation of bullish momentum.

USDINR April future is having immediate resistance at 75.50 followed by 75.70 while the support has been shifted upward from 74.30 to 74.50.

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