Jan 05: Dollar, INR, Currency market update by Anindya Banerjee of Kotak Securities

The dollar moved little after the FOMC minutes even though the central bank reiterated its focus on getting the multi-decade high inflation under control, and the traders moved their focus to the NFP data.

As of now, the Dollar index is stable between the 104.00-104.20 zone. The USDINR pair after breaching the 83.00 mark has reentered the trading range between 82.50 and 83.00. Today we saw the pair make a move toward the lower end of the range.

In the sessions to come, we will carefully observe the price action near the 82.50 zone. On the upside we expect the 83.00-83.20 zone to act as a resistance.’