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Market Roundup

* The Indian rupee is expected to open slightly lower following a higher greenback against the regional currencies. The recovery in crude oil prices could weigh on rupee bonds. The foreign fund buying domestic equities and risk-on sentiments will support the rupee.

* On Monday, spot USDINR gained 13 paise to 83.51 following emerging-market Asian peers in the wake of upbeat US jobs data Friday. Technical setup remains bullish for the USDINR with resistance at 83.60 and support at 83.30. Focus now shifts to the release of US inflation data and FOMC decision due later this week. Investors are also gearing up for a Bank of Japan policy decision Friday.

* The BOJ is expected to discuss cutting bond purchases at the gathering, with some economists predicting the central bank will also lay the groundwork for raising rates next month.

Forex

* The euro settled near a one-month low amid demand for put options on the common currency following European Parliamentary results and a call for snap elections in France. The yield on 10-year US Treasuries advances three basis points to 4.47% following a soft three-year auction

* The European Central Bank must stay cautious, and last week’s cut in borrowing costs won’t necessarily be followed by further rapid moves, according to President Christine Lagarde.

* Yields on France’s 10-year bonds climbed to their highest this year, while the nation’s top banks tumbled.

Equities:

* Asian stocks were muted Tuesday, following a subdued session on Wall Street as investors positioned for this week’s Federal Reserve decision and US inflation data. The S&P 500 rose 0.3% Monday to close at a fresh record high.

Commodities:

* In commodities, oil pushed higher following its biggest gain since March, ahead of an OPEC report that will provide a snapshot of the market outlook. Gold clawed back some of Friday’s losses as traders look ahead to the Fed meeting.

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