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A Calm Start

Rupee set for steady start following Asian peers. Asian stocks look set for a steady open after U.S. shares and Treasuries rallied as investors judged that a jump in inflation is likely to be transitory. The US 10-year Treasury yield fell to 1.43%, its lowest point since March.

Spot USDINR closed at 73.06 gains 8 paise, up for the third day in row but remained in tight range in absence of fresh domestic triggers. Technically, the pair has resistance at 73.30 and support at 72.70

The dollar fell, pressured by a slide in U.S. yields, as traders rushed to cover short bets on Treasuries amid concern higher-than-forecast inflation data released Thursday is unlikely to force a shift in Federal Reserve policy any time soon. The consumer price index climbed 0.6%, the second-largest advance in more than a decade. Though distorted by the pandemic, the CPI jumped 5% from a year ago, the largest annual gain since August 2008.

ECB opted for a “steady hand”, as President Christine Lagarde said, even sticking to the wording that pandemic purchases will continue at a “significantly higher pace” than early this year. That’s in line with what market expectations. Lagarde acknowledged there was a “debate on the pace of purchase” and “some divergent views” in the Governing Council. The euro was down against the dollar, but the move was more in sympathy with global risk sentiment and last quoted at 1.2186 a dollar.

Prime Minister Boris Johnson met with U.S. President Joe Biden for the first time ahead of the Group of Seven summit that the U.K. is hosting from Friday. Leaders gathering on the Cornish coast in southern England will discuss Covid, China and climate change, including a proposal to do away with polluting cars

USDINR

USDINR June futures consolidated for the third day in row with small body candle.

The pair has been trading in the range of 73.25 to 72.90 since start of the week.

The pair is having resistance at 73. 40, the 21 DEMA and support at 72.80.

Momentum oscillators and indicators flatten on daily chart indicating continuation of consolidation.

USDINR June futures expected to trade in the range 72.80 to 73.25 with neutral bias.

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