Market Highlights & Commentary:
- INR opens stronger at 69.09 as against yesterday close of 69.23 and may trade the day between 68.95-69.25 under two-way price action. A small chance of 68.80 cannot be ruled out.
- Going forward, we think bounce back to come from levels in the range of 68.50 to 69.0. However, overall the theme would be a positive environment for INR
- Overall we suggest exporters to hedge long term USD at levels closer to 69.80-70 and imports to hedge for very very near term (2-3 days)
- In the overseas market, poor manufacturing data from U.S lead USD to slip to one week low and 10 year yield now at 2.05%. As a result, other currencies gained and crude further felling now around 61
- In India also, now ten-year yield is below 7% as the market expects rate cut and change of stance by RBI on June 6th announcement
- Today later in the night, U.S Fed chair is scheduled to speak. The market will be closely watching on Fed chair speech to get any fresh insight on the economy.
- This morning most of the Asian currencies and equities are mixed.