INR forecast: INR opens weaker around 72.17 as again Fri close of 71.73 and may trade the day between 71.80-72.30 under two way price action.
Now 73 is very much in sight in coming days and 75 can not be ruled out. In next 2-3 days, we would the India’s CPI and trade deficit data. Any poor reading would be punished INR and any good reading may be ignored.
On Fri, there were mild signs of correction and there was a feeling that traders would book profit and lighten the positions over weekend. However, today’s gap up opening has resulted in potential losses for those traders. It would only bolster them further to increase bets against INR.
US NFP and hourly wages data was very good and added to an already strong USD.
One of the other reason for gap up opening is general INR weakness and Trump threatening to impose tariffs on entire Chinese imports. The guy needs to cool down! The current world order has been build over year and years of work.
In other interesting development, SEBI has relaxed KYC guidelines for FPIs and this would take away a potential danger for Equities.