INR forecast: INR likely opens flat around 72.670 against the previous close of 72.69 and may trade the day between 72.45-72.96 under two-way price action.Today is important event of FOMC meeting outcome scheduled later at night at 11:30 pm. In all likelihood, US Fd would increase interest
Yesterday again INR stopped short of 73.00. Govt comments to provide liquidity to financial markets supported equities and INR saw mild gains.
Nov 4th Iran sanction starts and crude could further inch up ahead of it. Although Trump is trying to pressure OPEC to stabilise crude prices.
Overall, USD supply in capital market is drying up while trade deficit continues at elevated levels. All this does not bode well for INR. In medium term, next few months, Inr could see levels of 75-77. In short term, consolidation could happen. Going ahead if weakness in INRcontinues, RBI in its 5th Oct meeting is likely to hike key lending rate(repo rate) by 25 bps point. Also, if some talks are to be believed RBI is planning to issue a NRI bond and raise USD 30 Bn.-USD35 Bn.