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Market Roundup 

* The Indian rupee is likely to open flat following Asian currencies. The foreign fund outflows and the central bank’s intervention have been weighing on the local rupee. While there is no change in fundamentals, the rupee is expected to remain less volatile among its peers.

* On Thursday, spot USDINR gained 10 paise to 83.48 ahead of the monetary policy decision. The pair is expected to trade in the tight range of 83.30 to 83.60.

* Investors will be monitoring the Indian rupee as the nation’s central bank meets to decide interest rates, with economists seeing borrowing rates unchanged. The Reserve Bank of India will probably leave the benchmark rate at 6.5% for an eighth straight meeting. The RBI has maintained its hawkish stance of “withdrawal of accommodation” since June 2022.

Forex:

* The greenback traded lower against all of its G-10 counterparts amid positioning ahead of Friday’s US employment report. US 10-year Treasury yield rises one basis point to 4.28%

* The euro gained after the European Central Bank lowered its policy rate by 25 basis points to 3.75%. It’s the bank’s first cut since 2019. The ECB delivered a rate cut as promised but also raised its inflation forecasts, leaving investors guessing on the timing of its next cut.

* US traders have escalated rate-cut bets from the Fed in the past week, emboldened by the slew of softer-than-forecast US data, the Bank of Canada’s and ECB’s decision to ease monetary policy.

Equities:

* Asian stocks rose at the open on Friday as Wall Street wavered ahead of a key US jobs reading that’s likely to guide the Federal Reserve’s policy outlook. The S&P 500 closed little changed, having stalled near all-time highs, as traders refrained from big bets ahead of US non-farm payrolls data.

Commodities:

* In commodities, An unexpected plan by OPEC+ to return some supply this year has put oil on track for a weekly decline. Oil has trended lower since early April in part due to concerns over the demand outlook.

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