March 21, 2023 04:24 GMT
USD/INR Struggles For Fresh Downside, Equity Outflows Highest Since Adani Sell Off
USD/INR prints at 82.60/65, little change, with earlier lows near 82.53 drawing USD support.
- The pair printed a high of 82.70 yesterday before moderating gains, the 20-day EMA has provided support to USD/INR (82.45) in recent dealing.
- Intervention risks will firm as USD/INR ticks higher, the RBI intervened in late February as we approached the 83.00 level.
- Last week there were net outflows in Indian Equities of $205mn, this was the largest weekly outflow since the late January/early February Adani driven sell off.
- Data wise the BoP current account balance for Q4 is due some time below now and 31 March. The Bloomberg Survey Median Estimate sits at -$23bn, the prior read was -$36.40bn.