Open stronger at 69.42 as against Fri close of 69.68 and may trade in range of 69.05 to 69.57 and small chance of 68.85. Technically, INR should see a decent bounce back from 68.85 and if it even breaks below 68.85, we may quickly see levels around 67.50
Given that Brent is again heading towards 60, we suggest import hedging for 2-5 days around 69.00 levels and hedge exports for long term around 69.5
Possible change in Fed stance to neutral and strong jobs report from US; possible positive talks between US and China is resulting in risk ON mood. As a result, most Asian equities are in green between 0.7% to 1%
Broadly as mentioned earlier, the risk for INR weakness are very few( high real interest rate of 4% that is good for bond investors; charging US monetary policy; cooling off of geopolitical tensions etc) and hence suggest long term export hedging at very uptick. January month has seen positive bond inflows and this should get supported in coming days.