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Rupee turns bullish following foreign fund inflows
March 06, 2023
Going ahead, the positive trend in the rupee could follow this week amid risk on sentiments backed by foreign investment. Spot USDINR has support at 81.30, the rising trendline adjoining the previous swing low of 78.49, 79.03 and 80.88, and resistance at 82.55.
Last week, the S&P 500 gained 1.9%, the first weekly gain in a month. A gauge of the dollar’s strength posted its first weekly loss since January as optimism about China’s growth and an eventual peak in US policy rates sent US shares sharply higher. Fed Chair Powell’s semi-annual testimony this Tuesday means the appetite for selling the dollar will remain relatively contained after eroding February gains.
The investors can earn about 5% in US Treasuries, the highest since 2007, at the start of March, which may be a strong headwind for most risk assets. The yields on 10-year US Treasuries ended at 3.95%, pulling back from 4.09%, hit on Thursday for the first time since November.
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