Evening Currency Updates 03 September 2021 by Anindya Banerjee, Kotak Securities
Below is quote on Evening Currency Updates 03 September 2021 by Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives, Kotak Securities
* What a change in weather in USDINR. After being ranged for over 2 months, between 74.10 and 75.00, USDINR was slammed lower, towards 73.00 levels this week, on the back of weak $ Index and rising equity markets. After a bland speech from US Fed chairman, Mr. Powel in Jackson Hole, where he dragged his feet on raising interest rates or announcing taper, USDINR came under selling pressure. This trend may not reverse soon, as traders shy away from USD and own emerging market currencies like the Indian Rupee.
* Next week is going to be data light and hence the downward bias will continue in USDINR, barring any unexpected sell-off in stocks. However, with USDINR back near 73.00, the tussle between market and RBI is fully underway. Market wants to know where will RBI draw the line and intervene aggressively? We would continue to look for selling opportunities as upside may remain capped under 73.50 levels on Sept futures.
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