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King Dollar Remains in Demand

* Indian rupee is likely to open slightly lower following weak regional currencies and risk-averse sentiments. The dollar remained the go-to haven currency as geopolitical tensionsrise and the global growth outlook weakens.

* On Monday, spot USDINR closed unchanged at 82.32 after opening at a record high following the central bank interventions and expectation of corporate dollar inflows. However, the direction of the pair remains bullish amid broad-based strength in the greenback and a mismatch between dollar demand and supply. Technically, spot USDINR is having support at 81.95 and resistance at 82.90.

* Shares in Asia declined for a fourth straight drop following US equities amid persistent concern that rising interest rates and geopolitical threats will crimp global growth. A measure of dollar strength held near the highest this month and the yen traded within sight of the original level that spurred Japanese authorities to defend the currency in September.

* The yen trades in a narrow range in early Asian trade, halting a four-day decline amid concern the authorities will step in to prevent further losses. USDJPY is little changed at 145.68 afterrising to 145.90 on Sept. 22, the highestsince 1998

* British authorities’ efforts to reassure investors fell largely flat after a series of announcements failed to arrest a rout. The pound can weaken further this week as the dollar lifts because US inflation can reinforce the dynamic that the FOMC will not pivot on rate rises soon, and domestic data will reinforce that the UK economy is slowing.

* The heads of the International Monetary Fund and World Bank warned of a rising risk of a global recession as advanced economies slow and faster inflation forces the Fed to keep raising interestrates, adding to the debt pressures on developing nations.

Technical Observations:

* USDINR October futures moved right to make a fresh all-time high on the third day.

* The pair has been trading well above short-term moving averages and heading 2 SD of 21 days moving average i.e. 83.21.

* It has downside support at 82.20, the previous swing high and 81.35, the swing low.

* Momentum oscillators on the daily chart are placed in an overbought zone indicating positive momentum.

* Long build-up has been seen with a rise in price, open interest and volumes.

* USDINR Oct. fut. is expected to remain in demand with higher side resistance at 83.20 and support at 82.20.

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