INR opens stronger at 69.55 as against yesterday close of 69.70 and may trade in the day in range of 69.40 to 69.65. Yesterday we saw good amount of FII investment in bond markets resulting in stronger INR and fall in yields below 6.85%.
Trump tweeted about positive talks with China and it lifted markets sentiment, increasing chances of a positive announcement after G 20. Crude again bounced back but is still below 63.
For today, suggest to wait for any hedge decision. INR is still in range of 69.0 to 70.0
Currency market yesterday’s update: Yesterday, USDINR ended lower on Tuesday helped by lower crude oil, suspected RBI selling and on likely inflows into local debt markets. Comment by the European Central Bank Governor Mario Draghi that the bank may need to provide more stimulus to bolster growth in the single currency region helped the greenback rally and fall in EUR.