INSUBCONTINENT EXCLUSIVE:
In an early trade session, the local unit inched six paise higher to 74.36 against the greenback
decision due on Wednesday and a month-end rebalancing.Meanwhile, the dollar index, which gauges the greenback's strength against a basket
as FOMC members will resume their discussion on the policy from today and will announce the result tomorrow
The probability of members having the same view as the June meeting is approximately 60 per cent
rupee has been into the consolidation phase of 74.30-75.00 zone
Moving ahead, it would be interesting to watch whether RBI again take charge and intervene heavily at current levels or allow it to
appreciate towards 74.00-74.10 levels.The chances of reversal from the current levels are high as the resurgence of COVID cases in Asia,
higher inflationary pressure, and importer's rush to cover dollar exposure ahead of Fed and RBI meeting could take the pair again towards
stuck in a narrow and listless range with spot USDINR closing just 4 paise higher 74.46
July futures is trading four paise higher at 74.48
A sharp drop in Chinese currency triggered a depreciation in rupee
However, the gains in USDINR were limited as corporate flows capped the upside
stronger at 74.3650 as dollar index fell slightly
The rupee remained in a range of 20 paise weakened by outflows from oil and a learning company
Later as Hang Seng fell and the yuan weakened sustained buying of $ took the rupee to 74.5450
However, inflows limited the rupee depreciation and it closed at 74.4625 for the day.Most Asian currencies have fallen against the dollar
to retain a weaker rupee slightly above the 74.30 level in order to maintain a competitive exchange rate, since demand in international
markets is picking up in the wake of good export growth in the last two months
time.On the domestic front, USD/INR July opened on negative note and made a strong bullish candle in the starting of the session on
15-minute charts and was moving in a marginally sideways to Bearish trend for rest of the session.''Domestic Equity Markets Today:On the
domestic equity market front, the BSE Sensex ended 273.51 points or 0.52 per cent lower at 52,578.76, while the broader NSE Nifty declined
78 points or 0.49 per cent to 15,746.45.Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities:''The
market failed to surpass the level of 15900 for the third consecutive day, which triggered bull liquidation below the level of 15750
aggressive selling from FIIs in the Asian markets, which also weighed on the domestic market sentiment.Weakness in Dr
Reddy's resulted in a massive liquidation in the shares of other pharmaceutical companies, dragging down the Nifty Pharma index by more
