USD INR Weekly Forecast

After being stuck in a range of barely 30 paise for almost three weeks, finally, USDINR made a breakout move. Next week, Indian GDP data for the September quarter will be keenly watched. However, a weaker than expected growth number is expected to have a bigger impact, than a strong one, as USDINR has begun to move higher. At the same time, the most important driver remains global risk sentiments. A new COVID strain has got governments around the world worried. WHO has convened a special meeting and fresh lockdowns are being announced in Europe. A further escalation in covid restrictions can hurt sentiments. Therefore, volatility can be high in USDINR depending on the direction of the global equity markets.