Rupee And Bond Update - Jan 23, 2023: Reliance Securities

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Reliance Securities Report

The Indian rupee could open stronger this Monday morning and gain past 81.00 per dollar supported by foreign portfolio inflows and weak dollar.

Asian currencies have started with gains tracking a weaker dollar and could aid sentiments.

The rupee could also track gains in the non deliverable forward markets which has started above 81 per dollar this Monday morning.

So, the rupee could open at around 80.8500 to 80.8700 per dollar this Monday morning versus a close 81.1200 on Friday.

Supports for the U.S. dollar-Indian rupee spot pair are at 80.70 and 80.55, while resistances are at 81.25 and 81.35 and pair could remain with the levels this Monday.

However, in a holiday shortened week, volumes could be lower.

Chinese traders are also away this week, so volatility will be low.

However, importer hedging and possibility of Reserve Bank of India’s presence could cap gains.

Investor focus will now switch to the Fed's policy meeting at the beginning of next month, as well as the union budget presentation in India on Feb 1.

In the overseas markets, the U.S. dollar started weaker this Monday morning in Asian trade on dovish Fed expectations.

Preliminary readings of January PMIs, U.S. Q4 GDP will be crucial for fresh impulse this week.

The euro, the pound sterling and the yen gained this early Monday morning trade tracking a subdued dollar.

Indian bond yields are expected to trade higher this early Monday morning ahead of a heavy state debt supply this week, while sentiment remained cautious ahead of the Union budget announcement due on Feb 1.

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