USDINR dips rangebound and GBP waits BOE decision

US Fed Rate

New Delhi, India

September 21, 2023


The USD/INR pair appears to have a strong upward bias in last intra-day session. Support for the September futures contracts can be found at 83.20 and 83.05, while resistance is expected at 83.40 and 83.55. US bond yields at their highest since 2007 and selling pressure in Asian equity markets are favoring the USDINR. Central bank intervention in the offshore market may be restraining the surge, but the overall trend remains upward. Traders are advised to consider buying on price dips with a stop level below 83.00. Resistance levels are anticipated at 83.30 and 83.50.


The intra-day bias for GBPINR is range-bound. Support for September futures stands at 103.00 and 102.80, with resistance levels at 103.30 and 103.55. The Bank of England is expected to raise interest rates this week, but the decision is complex due to high inflation in Britain. Robust wage growth signals inflationary risks. A focus on the economy rather than inflation could lead to selling pressure on GBP/INR, while an inflation-focused stance might trigger a relief rally.


EUR/INR support for September futures can be found at 88.80 and 88.60, with resistance at 89.20 and 89.40. The pair continues its descent, possibly targeting the June lows near 88. This week, key events like the US Federal Reserve meeting and Eurozone flash PMIs will be crucial. Trading is expected to remain within the current range for today.


Last Intra-day bias for JPYINR shows a slow downward drift. Support levels for September futures are at 56.30 and 56.10, while resistance is expected at 56.60 and 56.75. Significant resistance is observed in the USD/JPY market around 148, with support near 146.00 and 144.50. Given the upward trajectory of US yields and Brent crude oil prices, USD/JPY is expected to surpass 148, potentially putting downward pressure on JPY/INR.


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