Evening Currency Updates 16-07-2021 by Anindya Banerjee, Kotak Securities
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Below are Quote on Evening Currency Updates by Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives, Kotak Securities
The last two weeks have seen volatility compress in USDINR. In fact, the intra-week price range in USDINR was lowest since early August 2020. On one hand, RBI was rumored to have been buying quite aggressively under 74.50 on spot but on the other hand, record FPI flows in the ZOMATO IPO and FDI inflows did not let USDINR move above 74.65 levels.
Volatility expansion is natural once USDINR gets coiled in a low volatile range for some time. With the FPIs shying away from the secondary market and IPO season entering a lull, USDINR may converge to a higher US Dollar Index. A Bit of risk-off is needed in equity markets to trigger a move towards 75.00 levels in the coming days.
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EURINR trading range for the day is 89.13 - 89.49. - Kedia Advisory
