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Market Roundup

* The Indian rupee is expected to open flat following stable regional currencies. The foreign fund outflows and higher crude oil prices may weigh on the rupee but the impact will be minimal as RBI keeps an eye on the volatility.

* On Wednesday, spot USDINR remained unchanged at 83.515 just like the benchmark Nifty Index. Technical set-up remains constructive for the bulls amid higher highs and lows. However, the central bank’s intervention could limit the gains. The pair has support at 83.30 and resistance at 83.60 with a positive bias.

* The focus turns to a Bank of England policy meeting later today.

 Forex:

* An index of dollar strength rises for a third day, tracking higher nominal and real Treasury yields. The US 10-year Treasury yield snapped a five-day losing streak, rising to 4.496%.

* The yen lags behind peers as traders downplay intervention risks following earlier comments by Bank of Japan Governor Kazuo Ueda.

* Federal Reserve Bank of Boston President Susan Collins signalled interest rates will likely need to be held at a two-decade high for longer than previously thought to damp demand and reduce price pressures.

* European Central Bank Governing Council member Pierre Wunsch still sees dangers for consumer prices – including a weaker euro should monetary policy diverge too much from the US.

Equities:

* Asian Equities fluctuated, with the S&P 500 holding below 5,200 and finishing little changed, as megacaps came under pressure. The lack of conviction among investors to buy into the recent bounce shows the market is far from turning fully bullish.

Commodities:

* Oil prices rebound as EIA data shows a drop in weekly inventory and Middle East tensions persist. Crude Oil futures rose +0.78% to $78.99 per barrel. Gold futures inched lower by - 0.08% to $2,322 per oz

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