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Market Roundup

* The Indian rupee is expected to open with a cut amid geopolitical worries. The usual suspects of a risk aversion wave are in play on Friday as equity indexes are lower, the haven dollar is catching a bid, as are bond futures, with oil contracts modestly higher. Elsewhere, gold advanced amid growing political risks and demand from central banks and Chinese consumers. The catalyst appears to be unconfirmed reports of explosionsin Iran.

* On Thursday, spot USDINR ended almost unchanged at 83.54 but closed at a record high level amid foreign fund outflows and risk-averse sentiments. Technical setup remains bullish for the pair and immediate resistance is placed at 83.70 while 83.20 becomesthe support.

* A gauge of the dollar’s strength climbed toward its highest since November. The move came amid unverified media reports of explosions in Iran, Syria and Iraq. Traders have been awaiting an Israeli response to Iran’s attack last weekend, with the rhetoric between the two escalating.

* US equity futures fell in early Asian trading as risk sentiment turned, weighing on the region’s equities

* European Central Bank Governing Council members Olli Rehn and Fabio Panetta pointed to June as potentially the right moment to cut rates while fellow policymaker Robert Holzmann said policy may be impacted by the timing of Fed easing.

* In economic data, US jobless claims remained subdued, consistent with a healthy job market. Separately, the Philadelphia Fed factory index topped estimates. While existing home sales fell, the pace was roughly in line with the median forecast of economists.

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