The Indian rupee rose for a second straight day as hopes for financial reforms in the budget in early July raised expectations foreigners would continue to bring in more capital. U.S. Dollar resumed weakening after a brief period of strengthening as speculation of future rate hikes in the US were dampened. In a survey of the major US bond traders all 16/16 thought the US would not raise rates this year. USD/JPY was lower even as stocks rallied on banking and mining stocks. Oil broke and closed above $70 a barrel. Crude Oil closed up $1.92 to finish the day at $70.01.Looking ahead, April Trade Balance forecast at -29BN vs. -28Bn previously.
Technical outlook:
USDINR is expected to trade in a bearish note for the day. With the trading range between 46.98-47.40 levels for the day. Good support is seen at 47.90 levels and key resistance is seen at 47.45 levels. Stochastic is trending down giving bearish crossovers and the currency is seen trading below the moving averages confirming the bear note.
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