WEDNESDAY USDINR & GLOBAL OUTLOOKS:- RUPEE FIRM, DOLLAR BACKFOOT, STERLING UP, RBNZ HIKE 75 BPS!!

USDINR

On Wednesday, The Domestic Unit Likely to commence between 81.65 – 81.75 levels as dollar retreated across the board, ceding some of the ground gained in the previous session, as investors looked past worries about China's COVID flare-ups, boosting demand for more risky currencies.

USDINR TECHNICAL

Day Trend: - HOLD

Weekly Trend: - UPSIDE SELL

INTRADAY RANGE – 81.98 (81.78 – 81.59) 81.39

THE RNBZ RATE HIKE

On Wednesday, The Reserve Bank of New Zealand hiked interest rates by a record 75 BPS, and warned of a potential economic downturn in the near-term as it continues to move against inflation. The central bank raised its benchmark rate by 75 bps to 4.25%- their highest since the 2008 financial crisis. The record-high hike was widely expected, given that the central bank will be unable to act for the next three months due to the Christmas and summer holidays.

THE FED EXPECTATION

The Fed’s hawkish outlook is keeping a floor under the dollar but expectations of a slower pace of tightening is capping rallies.

THE STERLING

Sterling was 0.6% higher at $1.1885 after data showed Britain's government borrowed less than expected in October, although the budget deficit is likely to balloon in the months ahead thanks to energy bill support measures and a slowing economy.

THE CRYPTO WORLD

Genesis said on Monday it has no plans to file for bankruptcy imminently, though Bloomberg News reported, citing sources, that the broker was struggling to raise fresh cash for its lending unit, and warning investors it may need to file for bankruptcy if it does not find funding.

Keep calm wait for FED move!!

THE OIL GAME

U.S. crude stockpiles fell much more than expected last week, though product inventories including gasoline increased. Sentiment on oil prices is in the midst of a tug of war between concerns about slowing demand from China -- the world's top energy importer, following renewed Covid restrictions in major cities including Beijing -- and optimism that major oil producers will continue with plans to cut productions.