INR trades slightly weaker for a fourth.......>

INDIA: INR trades slightly weaker for a fourth consecutive session, despite a

moderately weaker greenback over the past few days. USD/INR now looks to have

cleanly broken above the 50-dma at 71.2670, hitting 71.40 in the process.

Newsflow and data have been few and far between over the festive period, keeping

focus on the viability of the current rally to re-test the early December highs

at 71.8725.

-INR weakness is coming despite the modestly stronger domestic equity market

(Friday saw the Sensex recover to close just shy of the December high at 41809)

as the yield curve remains under pressure following the RBI's announcements

today that they are to intervene in bond markets next week to a larger extent

than expected. 

-Manufacturing PMIs due on Jan2 are the next tier 1 release.