INR forecast: INR opens strong at 6837 against yesterday close of 68.45 and now 6830. For the day, range could be 68.20-68.44 under two way price action.
RBI rate hike by 25 bp to 6.25% was taken positively by markets as bond yields saw mild drop and INR saw gains. RBI said that may we we are verge of currency war and this rate hike was one step to defend INR.
Overnight, Crude fell; FOMC meeting was non event and it hinted at possibility of rate hike in Sep-18
CNY continues to trade weaker. Increasing, we feel that INR may delink to CNY and find its own course based on domestic factors.
Today Bank of England will conclude its monetary stand later in the day. GBP has turned marginally weaker this morning around 1.31 levels but continues to trade above key support zone.
Overall, after a long time, mood seems to be neutral on INR with bias for some