* USDINR trading range for the day is 63.68-64.04.
* Rupee appreciated against the dollar on likely overseas fund inflows into local stocks.
* IMF upgrades forecast for India’s growth rate from 6.7% to 7.4% in 2018 & 7.8% in 2019.
* The International Monetary Fund said India would regain the title as the world’s fastest growing major economy in 2018-19.
Yesterday rupee appreciated by 0.20 percent as dollar index weakened by 0.33 percent on account of IMF projection of Indian GDP to grow at 7.4% for 2018 making it the fastest growing major economy. However, India’s trade deficit widened to $14.88 billion in Dec’17 from $11.5 billion a year ago. This was on account of higher imports of crude oil and gold. However, the government decided to reduce its borrowing from Rs. 50,000 cr to Rs. 20,000 cr for the current fiscal year. Also, Indian equity market remained positive during the day with a surge of around 1.06 percent in Nifty Index.
The factors driving dollar index down were worries that Donald Trump may end NAFTA trade agreement with its counterparties. Also, the US government had went on shutdown from Friday midnight after senate negotiators had failed to reach on a agreement to keep funded over amid a dispute over immigration and border issue. However, the shutdown got ended today as the senate voted for a temporary funding bill.
USDINR is expected to move sideways in the coming session
* EURINR trading range for the day is 77.92-78.54.
* Euro remained seen under pressure as the dollar had recovered from earlier losses after U.S. senators struck a deal to lift a three-day government shutdown.
* Expectations that the European Central Bank may withdraw its stimulus gained momentum earlier this month.
* The ECB is unlikely to ditch a pledge to keep buying bonds at its upcoming meeting on Thursday.
EURUSD appreciated by 0.3 percent while EURINR remained flattish during the day.
ECB spokesperson commented on cutting down the 2.55 Euro monetary stimulus program in 2018 if inflation and growth persists in the Euro area. Also, CPI data from the Euro region came in line with market estimates at 1.4% for Dec’17.
EURINR is expected to depreciate in the coming session
* GBPINR trading range for the day is 88.75-89.56.
* GBP rallied helped by optimism that Britain will reach a favorable divorce deal with the European Union.
* French President Emmanuel Macron said Britain would be able to have a bespoke deal with the European Union after Brexit, one of PM May’s objectives.
* Data showed speculators increased their net-long positions on sterling – or bets that it would rise – to the highest level in 3-1/2 years in the latest week.
GBP appreciated against the US dollar by 0.1 percent during the day. Also, GBPINR appreciated by 0.12 percent during the same time period. Public sector borrowing for UK came in at 1.02 billion pound which less than market estimates of around 4.2 billion pounds for Dec’17. However, retail sales came in at -1.5% which is lower than market estimates of -0.8 percent for Dec’17.
GBPINR is expected to depreciate in the coming session
* JPYINR trading range for the day is 57.26-58.06.
* JPY remained in range after the Bank of Japan kept monetary policy unchanged as expected.
* The Bank of Japan held monetary policy stable, reaffirming its ¥80 trillion in annual asset purchases and its yield curve strategy.
* Investors noted a market operation earlier this year that was seen as a potential signal of a slower pace of asset purchases.AFTER POST CONTENT
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