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Forwards Indicate Higher Open

INR

The rupee is expected to gain at the open, 1-month forwards have fallen 6 ticks today to 72.65, spot USD/INR closed yesterday at 72.4925. Equity markets in the region opened higher, but the negative slant from other indices has seen gains erased.

  • The RBI minutes release yesterday shows the bank is concerned by inflation readings, the minutes showed that most members cautioned on upside risks. The bank voted unanimously to keep rates unchanged and kept its accommodative stance. RBI Governor Das added that inflation for certain items, such as food and fuel, is likely to remain sticky, but the most recent lower inflation print helped ensure that the policy stance would remain easy.
  • The bank also intimated that policy is being delivered through liquidity and support in the bond market as opposed to further rate cuts.
  • Markets look ahead to GDP data on Friday, today the RBI will auction state bonds, with sovereign supply due tomorrow.

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