Wednesday 20 November 2019

USDINR Daily Update - 20-Nov


Globally, equity markets slipped in the red after Trump threatened to raise tariffs if China does not enter into a deal. Consequently, USD/JPY pair slipped below 108.50 level, USD/CNH pair spiked above 7.0300 level. On the other hand, GBP/USD pair slipped more than 50 pips to 1.2910 after inconclusive debate b/w Boris Johnson and Jeremy Corbyn. Going forward, market will take further cues from US FED meeting minutes, schedule to release later during the day.

On the domestic front, finance ministry reiterated the confidence to retain fiscal deficit target of 3.3%. This lead to a rally in bond markets with 10 year bond yields slipped nearly 5 bps to 6.47%. Additionally, gains in bond markets were supported by movement in US 10 year bond yields, which slipped below 1.75%.  

The USD/INR pair opened the session at 71.83 against previous close of 71.71. Going forward, USDINR pair has immediate support near 71.65-70 levels and next support 71.45-50 levels, resistance at 71.92-97 levels. Range for the day 71.50-71.97 levels.

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