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Market Roundup

* The much-awaited date has come with Indian bond going global. The quarter-end rebalancing, dollar inflows and risk-on sentiments are likely to support the rupee in today’s trade, while broad-based strength in the greenback may try to limit the gain. The forward markets indicate USDINR opening near 83.46.

* The rupee appreciated 12 paise to settle at 83.46 against the US dollar on Thursday, supported by a positive trend in equity markets and an inflow of foreign capital amid a favourable domestic macroeconomic profile. Technically, the rupee has been consolidating between 83.30 to 83.70 and is expected to further trade within the said range for a few more days.

* India is set to lure billions of dollars more inflows when JPMorgan Chase & Co. adds the nation’s government bonds to its emerging markets index on Friday, opening up a $1.3 trillion market to a broader range of investors.

* Forex:

* The Dollar Spot Index is up 0.2% while the yield on benchmark 10-year Treasuries gain 2bps to 4.31%. Swap markets are pricing in about 45 basis points of easing in 2024, which would equate to less than two cuts.

* Offshore yuan is steady after China’s central bank said in a statement that it will balance economic growth, structural adjustments and fending off financial risks.

* ECB Governing Council member Peter Kazimir said one more reduction in borrowing costs is likely in 2024.

* Japanese Finance Minister Shunichi Suzuki told reporters “one-sided moves in the foreign exchange market are not desirable as currencies should reflect fundamentals and move in a stable manner”.

* Equities:

* Equities in Asia followed gains in US stocks and Treasuries ahead of the Federal Reserve’s preferred inflation gauge due Friday.

* Commodities:

* Sentiment was bolstered by a broader risk-on tone across markets. Further supply-side issues across energy and metals also provided some support. Oil was set to advance for a third session on Friday while gold held onto Thursday’s gains.

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