Rupee likely to draw support from expected inflows amid rise in US yields
By Nimesh Vora
MUMBAI, June 27 (Reuters) -The Indian rupee is likely to open slightly higher on Thursday, counting on inflows the inclusion expected from the inclusion of Indian bonds in a JPMorgan index in the face of a jump in U.S. Treasury yields.
Non-deliverable forwards indicate rupee INR=IN will likely open at 83.54-83.55 to the U.S. dollar, compared with 83.57 in the previous session.
Dollar inflows spurred by the inclusion of Indian bonds into the JPMorgan emerging market index, with effect from June 28, are expected. The inflows related to the passive funds that track the index are expected on Thursday and Friday, according to traders.
"The inflows have been the main talking point and based on this, I would say interbank is sitting short (on dollar/rupee)," a currency trader at a bank said.
"There is debate around the size of the flows. Whatever the size, you should much larger intraday moves in the coming tow sessions."
The rupee on Wednesday witnessed a choppy session, moving in a range of 83.42-83.61. The decline to 83.60 was "not expected at all", the trader said.
Most Asian currencies dipped and the dollar index =USD was holding at a near two-month high. The 10-year U.S. yield climbed 8 basis points on Wednesday amid worries over inflation.
This week inflation numbers from Canada and Australia have surprised on the upside. The U.S. core personal consumption expenditures (PCE) data, the Federal Reserve's preferred inflation measure, is due on Friday.
The 10-year U.S. Treasury yield is at a near two-week high.
"It is far from clear what the driver for this was. May be this is just a bit of profit-taking ahead of Friday's core PCE release," ING Bank said.
For Asian currencies, which have been struggling this year, the move higher in yields in an added headwind. The offshore Chinese yuan dropped below 7.30 to the dollar for the first time since November and the Japanese yen has weakened below 160.
KEY INDICATORS:
** One-month non-deliverable rupee INRNDFOR= forward at 83.62; onshore one-month forward premium at 8 paisa
** Dollar index =USD at 105.96
** Brent crude futures LCOc1 down 0.9% at $88.68
** Ten-year U.S. note yield at 4.34%
** As per NSDL data, foreign investors bought a net $296mln worth of Indian shares on June 25
** NSDL data shows foreign investors bought a net $128mln worth of Indian bonds on June 25
Reporting by Nimesh Vora; Editing by Rashmi Aich
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
