This huge weakening of the greenback comes at the backdrop of resurging covid cases in United States as compared to the rest of the world. The past couple of days has seen greater than 30k new daily cases. So the "emergency of dollar demand" might be waning at least till the fear of the second wave lasts and the rest of the world recovers steadily. More favorable currencies like YEN, EUR and even CNY (chinese yuan is slowly becoming a pretty strong alternative to dollar) will be sought after while the USD selloff lasts.
75.5 has been a strong support. Let's see how close can it get till Friday (expiry date of futures and options for USDINR), or does it even breach the line.
If there are no more significant violence along the Indo-China border this week (seems unlikely as the high level military officials from both sides have been talking constantly), the current trend will continue.
75.5 has been a strong support. Let's see how close can it get till Friday (expiry date of futures and options for USDINR), or does it even breach the line.
If there are no more significant violence along the Indo-China border this week (seems unlikely as the high level military officials from both sides have been talking constantly), the current trend will continue.