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FUNDAMENTALS OF CURRENCY:

* The dollar headed for its best weekly gain in three months on Friday, lifted by growing confidence that the U.S. economic recovery will outpace its global peers. The dollar index touched a two-month high in Asian trade amid signs of resilience in the labour market, with closely watched U.S. nonfarm payroll figures due later. It retreated in early London deals. "The U.S. economy is exceptionally strong relative to other countries, causing dollar short-covering," said Tohru Sasaki, J.P. Morgan's head of Japan market research in Tokyo, pointing to employment and manufacturing indicators as well as the pace of vaccinations.

* Investors piled into the Pound yesterday, in reaction to the latest Bank of England (BoE) policy decision. The BoE left UK monetary policy frozen as expected, and also lowered its Qi 2021 growth forecasts for Britain. However, markets were most excited about the bank’s indication that it was giving no signals On negative interest rates, despite recent chatter over the controversial subject.

* The EU has had problems in securing its promised number of coronavirus vaccines, and the rollout of vaccines across the Eurozone continues to see significant roadblocks and challenges. This has caused broad movement in the Euro lately. What’s more, the situation in the US is improving by comparison. As the US Dollar (USD) is the Euro’s biggest rival, US Dollar strength is only further weighing on the Euro.

USDINR TECHNICAL CHART

Technical indicators (Daily):

* RSI- 42.5904

* MACD- -0.1368

* MOVING AVERAGES (20,50,100)- (72.9516/73.3742/73.6152)

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