INR remains stable, risk-on sentiment prevails for now.
27th May 2022
INR likely to open around 77.50
Dollar remained subdued yesterday as risk appetite held well in equities. Dollar Index is lower at 101.70, with EUR trading at 1.0735, GBP at 1.2615 and JPY at 127.00. DOW ended higher by 1.6% and NASDAQ registered yet another 2.5%+ growth. Indian indices also had a green day with a jump of 0.9%. US 10y is stable at 2.75%. Brent continues to be elevated, now at 114.15.
US GDP came in slightly worse than expected due to a higher trade deficit, but the consumption part of the economy is still robust. Today’s PCE inflation data is more important for the Fed. INR remains vulnerable but stable for now. The next big moves would most likely be possible closer to the next month’s CPI and then the FOMC meeting. For now, the current range in USDINR might continue for a few days.