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Rupee Marginally Firmer, Narrow Ranges Persisting

INR

USD/INR is ~0.1% lower this morning, however narrow ranges are persisting after the pair printed its highest level since late February on Wednesday.

  • The pair prints at 82.60/80, broader USD/Asia trends have dominated in May. The rupee has lost ~1% in in the month.
  • Equity Inflows in May remain strong, with a further $374mn in Indian Equities bought by foreign investors this week to Wednesday.
  • USD/INR now sits comfortably above its 20- and 200-Day EMAs with a bullish trend firmly in place. Bulls target the high from 20 Oct 2022 at 83.29. Bears first look to breach the 20-Day EMA (82.40) to turn the tide.
  • Looking ahead on the wires next week Q1 GDP headlines the data calendar, an increase of 5.1% is expected, ticking higher from 4.4% in Q4 2022.

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