INR forecast: INR opens 6841 as against previous close of 68.45 and may trade the day between 68.30-68.55 under two way price action with small chance of 6822.
Yesterday U.S Fed chief Jerome testified before U.S joint economical committee and presented an upbeat economic picture. He estimated that US is at cusp of multi year growth and did not seem too concerned about trade war. Post testimony, USD saw mild gains against EUR and GBP.
Crude seems to be stabilizing around USD 71 a barrel after dipping below 70 a barrel yesterday. Market participant may see some fresh development from monthly OPEC meeting on 20th.
Today CNY is slightly weaker and closer to 6.7. Need to watch if it breaks above 68.70 and in that case some INR weakness would also be seen. Asian equities are strong after upbeat economic assessment of US Fed chief. Going ahead, INR has to close below 6820-6830 for move to 6780.