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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.
INDIA
USD/INR has stabilised alongside its Asian peers as a weaker greenback and lower US yields following yesterday’s data provides some relief to the region. Bloomberg’s Asia dollar index has been trending lower for much of the year, falling to its lowest level since 2022 earlier in the week.
- The prevailing view remains that USD/INR is biased lower over the medium-term, with INR backed to outperform other regional currencies. Most analysts cite both the impact of RBI intervention (containing USD/INR rallies) and carry trade dynamics through the rest of 2024.
- Market moves in local bonds have been contained ahead of Prime Minister Narendra Modi’s first federal budget, which is likely to be announced at some point in July and will lay out the Prime Minister’s policy priorities under the new coalition government. Analysts note that while yields across the curve initially slipped following index inclusion, profit-taking is likely now at play.
Figure 1: Bloomberg Asia dollar index (Source: MNI/BBG)
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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