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Below is Perspective note on rupee 09 January 2022 By Currency Desk of Emkay Global Financial Services

“SPOT USDINR pair continued to trade in a narrow range post the Union Budget outcome last week. The Markets are waiting for the Reserve Bank of India’s rate-setting panel to announce the interest rate decision which comes in the backdrop of Budget 2022-23, inflationary concerns and evolving geo-political situation. The MPC is scheduled to announce the policy resolution on February 10. Although the RBI is expected to maintain status quo on Thursday, the markets will be keenly watching out for its guidance on inflation and GDP outlook for the next fiscal.

The tensions between Russia-Ukraine continued to keep markets on the edge although, there have been diplomatic efforts between major nations to defuse the tensions. We expect markets to remain cautious until a decisive outcome is seen on the diplomatic front in the coming days. The pair needs to breakout above 75 levels to see a retest of its Jan, 2022 highs of 75.30. Failure to do so will see prices slip towards 74.50 again.”

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