INR forecast: INR opens flat at 71.99 as against yesterday close of 71.98 and may trade the day between 71.70-72.18 under two way price action. In coming day, we may see some bounce around 71.40 levels.
Yesterday INR for the 3rd consecutive day traded and ended stronger on back of major FII capital inflows and buying interest by foreign bank. With INR now holding above 72 levels possibility seems to be building that coming days INR may see 71.30-71.50 levels too.
India trade deficit for Oct’18 widen to USD 17.13 Bn. from previous of USD 14.61 Bn. on back of surge in imports and fall in exports. India’s import stood at USD 44.11 Bn. vs. exports USD 37.50 Bn. While gold imports fell, other major items including electronic, machinery etc saw a surge. Exports on other hand came in line with the expectation, petroleum product and gems- jewellery saw marginal growth.
In overseas market, GBP fell nearly by Rs.2 over Brexit uncertainty. Four key person including Brexit secretary quite with with few hours after U.K PM announced to seal deal over Brexit draft with cabinet. We believe BREXIT uncertainty related market turmoil may remain confined to EU one and may not have any impact on INR.
In another positive trend, US and China have increased efforts to reso