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Flat Start, CPI Falls In August

INR

The Rupee has opened dealing little changed, USD/INR sits at 82.92/93 little changed from yesterdays closing levels.

  • Yesterday USD/INR continued to see-saw in a narrow range between the 83 handle and the 20-Day EMA (82.85) as recent ranges persist.
  • Technically the pair remains in an uptrend, bulls target the high from 20 October 2022 (83.2975). Bears immediate focus is on a break of the 20-Day EMA.
  • In August CPI fell to 6.83% Y/Y from 7.44% prior as govt measures to ensure adequate food supplies kick in. CPI does remain above the RBI's target band.
  • Industrial Production from July also crossed yesterday, a rise of 5.7% Y/Y was observed.
  • On the wires sometime between today and Friday is August Trade Balance, a deficit of $21bn is expected.

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