The Dollar Index has bounced today but can have scope for a dip while below 98.50. The EURUSD can trade within the 1.1650-1.1780/1.18 region for the next few sessions. EURJPY has risen today but could still have scope for a fall while below 184.50. USDJPY on the other hand needs to see a sustained break above 157.30 to rise further towards 158+ else can fall back to 156.50-156. USDCNY could test 6.80, thereafter whether it would bounce back or decline lower is to be seen. Pound has dipped below 1.36. A rise back above 1.36 can be eventually bullish for the currency. Aussie can test 0.73 or higher in the near term while above 0.72. USDINR declined to 94.05 exactly in line with our expectations but faster on intervention from the RBI. But now, we need to see if 94 holds as immediate support or allows for a further dip to lower support at 93.50 (more likely).
The US Treasury and the…
