INR forecast: INR opens stronger at 72.70 as against previous close of 73.04 and may trade the day between 72.45-72.80 under two way price action.
INR is clearly on path of correction aided by fall in crude ( now below 71); early signs of start of FII inflow in debt market, hopefully a more controlled Trump.
Weight respect to crude oil market, traders are pricing increased supply from non OPEC and US. Some of our clients linked to oil market are suggesting further fall in crude. Clearly, NOW, price is a great “solver”. Earlier only solver Saudi decision to increase or decrease supply.
We are also tracking EMs and this month IDR has gained by almost 5% as its bonds saw rally. INR and IDR, generally, have high correlation.
Yesterday US fed repeated that probability of rate hike in Dec is high and as a result, USD gained and erased the losses witnessed after mid term election results.
Going ahead, there are many support levels for INR– 72.30, 72.10 and 72.0