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Market Roundup

* The Indian rupee fell to a record low at close, weighed by a strong dollar. Though the rupee is at a record low level it has been the second-best performing currency among the Asian baskets. Going ahead, the dollar inflows from bond inclusion, the central bank’s intervention and risk sentiments will be the driving factor for the local rupee. Bonds gained on the government’s reappointment of Nirmala Sitharaman as the finance minister, projecting an image of policy continuity ahead of a key budget announcement next month.

* Spot USDINR gained 6 paise to 83.57. Technical setup remains bullish for the pair with resistance in the area of 83.80 to 84 while on the downside 83.30 to 83.05 acts as support.

* India to release inflation data for May today ahead of the US CPI and FOMC meeting.

* Forex:

*  The dollar is rising toward a new high for the year on speculation that tomorrow’s US inflation reading and a Fed policy decision will increase demand. Today, the dollar traded mixed against its G-10 peers as traders as risk tone improves.

* A solid US Treasury sale saw yields fall across the board. This triggered speculation that Wednesday’s inflation reading will help the case for the Fed to cut rates later this year. Treasury 10-year yield is down seven basis points to 4.40% following a strong $39 billion auction.

* US monthly CPI is seen slowing to 0.1% in May versus 0.3% in April; annual headline to remain unchanged at 3.4%.

* Equities:

* Asian markets traded rangebound as investors awaited US inflation readings due this week. US futures were steady in Asia trading after the S&P 500 closed little changed. Equities slipped in Japan and Australia, while those in South Korea climbed.

* Commodities:

* Metal markets remained under pressure amid concerns over demand in China. Ongoing supply-side issues kept energy markets on edge. Crude oil edged higher as OPEC maintained its forecasts for strengthening demand. The copper price fell on signs of weaker demand in China.

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