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Market Roundup

The Indian rupee is expected to open slightly lower as the US rate cut bet is delayed further after recent upbeat US economic data. The forward markets indicate the spot USDINR opening around 83.31. The pair declined 13 paise to 83.19 on Wednesday. The forexmarkets were closed on Thursday on account of Ramadan Eid.

Technically, spot USDINR is expected to consolidate between 83 to 83.50 with a bullish bias. The breakout above 83.50 will pave the way for 83.70 and 84.

Asian equities were mixed after a rally in the world’s largest technology companies drove a rebound in US stocks. The US dollar was little changed after producer prices rose at a slightly slower-thanexpected pace, steadying markets that were hammered Wednesday as separate figures drove traders to slash rate-cut bets.

The euro edged lower after the European Central Bank held interest ratessteady butsignalled a path to easing. Gold surged further in early Asian trading after climbing to a fresh record Thursday on the US inflation report.

Meanwhile, oil edged higher Friday after a decline in the previous session as a swelling of US stockpiles overshadowed the possibility of an attack on Israel by Iran or its proxies. Swaps traders now see around 43 basis points of cuts from the Fed in 2024 versus roughly 65 basis points beforeWednesday’s CPI release.

The ECB held the deposit rate steady at a record-high 4% as expected, but the statement flagged a possible rate reduction ahead.

Money-market pricing was little changed from before the ECB decision, with traders now pricing about 22bps of cuts for the June meeting.

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