The Indian rupee is expected to head south following the Asian currencies and stronger greenback - HDFC Securities
Market Roundup
* The Indian rupee is expected to head south following the Asian currencies and stronger greenback. The forward markets suggest that spot USDINR could open a paise higher to 83.75. The rupee has been weakening following the central bank’s intervention.
* Indian bond yields fell to their lowest level in more than two years, tracking declines in US Treasury yields spurred by expectations that FOMC may signal interest-rate cuts in the coming months. 10-year yields declined 2bps to 6.92% the lowest since April 2022.
* On Monday, spot USDINR gained 1 paise to 83.74. Technically, the pair has resistance at 83.85 and support at 83.55.
* BOJ Governor Kazuo Ueda will have investors on high alert Wednesday when he lays out a detailed plan for quantitative tightening after years of massive easing. He may also double down by adding an interest-rate hike
* Markets are pricing in a roughly 50-50 possibility that the Bank of England may start cutting interest rates as early as Thursday
* Forex:
* The greenback reached a two-week high, supported by month-end flows ahead of a two-day Federal Reserve meeting where traders are anticipating a signal that the central bank is closer to cutting interest rates
* Euro is weighed down by lower European yields ahead of CPI data Tuesday, cross-related sales and month-end flows
* Equities:
* Asian stocks fell amid speculation investors are trimming some of their holdings before a rush of events in the coming days including major central bank decisions, key economic data and earnings from US megacap companies.
* Commodities:
* Oil was little changed near a seven-week low on a shaky demand outlook, especially in China. Gold retreated as the dollar pushed higher. The Bloomberg Commodity Index dipped to its lowest level since 2021.
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