INR opens at 71.04 as against yesterday’s close of 70.98 and may see a range of 70.90 to 71.25
Overnight saw fresh doubts on US China signing deal by December end and this led to fresh buying in safe heaven currencies like JPY and other, dollar index also gained. We feel that US China talks will continue to create such twists and turns.Domestically, govt’s concerted policy action to revive the economy is a positive sign. The latest being Rs 25 K crore fund to revive stalled realty projects. At a macro levels, as long as interest rates are benign and crude remains stable, there is no major reasons for INR to see sharp movement. It may stay in range of 70.50 to 71.50.
Suggest to use levels in range of 71.20-71.30 to hedge long term exports
Currency market yesterday’s update:
INR & other currencies traded lower on Wednesday on account of strong dollar index.
Spot: (Open, High, Low, Close): 70.79, 71.02, 70.77, 70.98)
Premia: (in %): 6 months (4.08 vs 4.11) 12 month (4.08 vs 4.11)
| FII Flows (USD mn) | |||
| Date | Equity | Debt | Total |
| 5-Nov-19 | 56 | 31 | 88 |
| Current month | 323 | 412 | 735 |
| Curr F.Y. (19-20) | 2,277 | 4,062 | 6,338 |