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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
INR
USD/INR has opened dealing ~0.2% lower, last printing 81.15/20.
- The pair has breached lows seen earlier in the month, and is again dealing below its 100-day EMA (81.70).
- A moderation in greenback weakness, the dollar printed its lowest level since late May, supported USD/INR earlier in the week.
- International flows from Global Funds, which bought a net ~$80M of Indian bonds and ~$365M of Indian equities, in the first 3 days of this week may have weighed on the pair. In the equity space, this is helping to stabilize net outflows from early in the year (we are still close to -$1.5bn YTD).
- The chart below overlays USD/INR against weekly net equity flows, which are inverted on the chart.
- The Rupee appears to be consolidating, the technical outlook is still bearish in USD/INR with the next downside target the 200-day EMA at 80.1065. Bulls look to break 100-Day EMA at 81.4827 to turn the tide.
- The calendar is empty next week, international and technical flows may be the main driver for the INR.
Fig 1: INR v Weekly Equity Flows (Inverted)
Source Market News International (MNI)/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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