INR forecast: INR opens weaker at 68.91 as against previous close of 68.88 and may trade the day between 68.70-69.05 under two way price action.
There are market talk of Parliament Standing Committee favoring opening of LOU market. If it happens, some part of immediate USD demand soil get postponed and INR weakness could remain under check.For now, FII numbers are positive for July and August till date.
For now, top seems to be 69.10 and any break above would easily bring 70 levels. We need to remember that Aug and Sept are historically weakest months for INR.
In the overseas market:
- USD remained firmed against basket of other major currencies including GBP & EUR.
- GBP slipped to 11 months low at 1.294 after news started to spread that no negotiation is taking place between EU & UK.
- Poor industrial data from Germany lead EUR to loose ground and trade weaker around 1.1558.
- Turkish Liya regained some of its lost ground after hitting to multi year low yesterday after news reported that two official will meet Trump and try resolving it’s trade issue in next two days.
- The People’s Bank of China (PBOC) set the Yuan reference rate at 6.8431 vs. previous day’s fix of 6.8322.
This morning most of Asian currencies and equities are mixed.