USDINR is expected to trade sideways: Religare Retail Research

Religare Retail Research's currency report on USDINR

The USDINR pair depreciated by 0.23% percent at 82.71 in the previous session, amid lackluster trend in the dollar index. The dollar ticked higher against major currencies in choppy trading, on track for its first monthly gain since September on views that interest rates will stay elevated for some time as inflation remains stubbornly high, while recession fears kept investors on edge. Recent upbeat data, such as a blockbuster employment report for January, helped the greenback rally in February on expectations that the Federal Reserve will have to raise interest rates higher and longer than the market had earlier anticipated to fight inflation. U.S. rate futures have priced in the Federal Reserve's target policy rate peaking at 5.4% in September, while rate cuts for this year have been largely priced out. The Fed's policy rate is currently in a 4.50%- 4.75% target range. U.S. consumer confidence unexpectedly fell in February, dropping to 102.9 from a 106 reading in January. Economists polled by Reuters had forecast the index would be 108.5.

OUTLOOK

USDINR pair is expected to trade with Sideways bias with key support around 82.30 (Spot) mark.

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