USD/INR Through 82, PMIs On Tap

USD/INR opened dealing at 82.08/2 ~0.1% softer in early trade.

• The pair dealt through 82 level yesterday, printing its highest level since early January (82.21) before marginally paring gains into the close.
• Bulls now target the January high of 82.94, bears look to break the 50-day EMA at 81.52 to turn the tide.
• The INR continues to weaken despite Global Funds buying a net $350mn of bonds on Feb 1, which was the day of the budget, and was the most daily inflow since Sept 16. There hasn't been a great deal of further downside in local yields post the budget, although today should see some downside given the global impulse.
• Local Equities finally saw some relief as Foreign Investors bought $310mn of equities on Feb 1. This comes after Foreigners sold $3.7bn of Indian equities in January, which was the largest monthly outflow since June 2022. The early tone to equities today is better, with the Sensex opening 0.7% higher.
• January S&P Global Services & Composite PMIs are on the wires today, there are no estimates for either print. The composite PMI last printed at 59.4, Services prior read was 58.5. The manufacturing PMI eased to 55.4 from 57.8 on Wednesday.