Currency Updates - July 8, 2021 - Kotak Securities

Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities:

"A typical risk off day it was for the Rupee pairs. Though Rupee only lost 13 paise against USD with July futures of USDINR closing at 74.95, but it was currencies like Euro and Yen which gained most against the Rupee. EURINR was up 0.3% and JPYINR was up 0.80%. A sell-off in global equity markets on the fear of Chinese crackdown on tech stocks and Fed staying hawkish is causing a flight to safety move. Risk assets are falling and carry trades are being unwound in the currency market. Funding currencies of carry trade, Euro and JPY are strengthening against higher-yielding currencies from emerging markets. Bias remains upward for USDINR. We expect a range of 74.75 to 75.20 over tomorrow. We may get to see some IPO-related flows, which may cap the upside temporarily."

Source : Equity Bulls

Keywords