INR forecast: INR opens weaker at 70.02 as against previous close of 69.81 and may trade the day between 69.80-70.20 under two way price action.
Oil prices jumped overnight by 3% to USD 74.63/barrel after U.S inventories fell more then expected by 5.8 Million barrels last week. This could explain weaker opening for INR.
Yesterday U.S central bank Fed released minutes from its 1st Aug’18 meeting which indicated that Fed officials see a major concern of ongoing trade war to effect the U.S economical growth. The minute indicated that tariffs imposed on a rage of goods by Trump pose a danger across a variety of areas which may hamper U.S purchasing power and disrupt the supply chain.
On inflation, the minute highlights that if fuel price continues to rise, inflation may pick up too. However the minute suggested that Fed that a gradual rate hike will be seen this year. Following this U.S 10 year yield fell to 2.81.