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Softer Open, USD Trend Dominating, But Rupee Remains Top Performer In March To Date

INR

Rupee has opened dealing softer on Wednesday, USD/INR prints 82.20/30 ~0.4% firmer today.

  • Broader greenback trends are dominating, the USD/Asia rally today has weighed on the INR as on shore markets re-open after being closed yesterday.
  • Bulls target a break of 83, an area which the RBI is said to have sold USD to defend last month. Bears target the 200-Day EMA at 80.7745.
  • In the first 3 days of March Foreign Investors bought ~$1.67bn of Indian equities, this comes after reports last week of GQG Partners buying shares in four Adani groups.
  • At the margins this will have helped INR outperformance against the rest of the USD/Asia bloc. INR remains the top performing EM Asia currency in March to date ( +0.62%, with bhat next at +0.53%).
  • Jan Industrial Production on Friday presents the next local data of note. Further out on Monday Feb CPI will cross, this will be a key factor for the RBI's April meeting.

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