INR opens at 70.89 as against yesterday close to 70.92 and meet trade in the range of 70.70 to 71.10.
For last few days INR market is seeing heavy USD inflows on account of large transactions. For example yesterday market talk was of USD 3 .7 billion inflow on account of purchase of reliance industries Tower assets by Brookfield. In past also whenever such large inflows are there, we have seen RBI abstaining from market to buy USD and similar pattern was seen for the last few days.
We think the current INR levels are quite attractive to hedge imports for the next one or two months.
In the global markets, EUR gained on the back of strong ZEW confidence data from Germany. Otherwise equities were flat. Tonight there is important US FOMC meeting and we expect the US Fed to keep the rates steady.