MNI China Daily Summary: Friday, October 11

MNI: GERMANY SEP FINAL HICP -0.1% M/M; +1.8% Y/Y

MNI: PBOC Net Drains CNY183.8 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.0731 Fri; +3.03% Y/Y

CHINA PBOC CONDUCTS CNY94.2 BLN VIA 7-DAY REVERSE REPOS FRI

CHINA SETS YUAN CENTRAL PARITY AT 7.0731 FRI VS 7.0742

MNI: GERMAN SEP CPI +1.6 % Y/Y

MNI: UK AUG TRADE BALANCE GBP -0.95BN

MNI: UK AUG CONSTRUCTION OUTPUT +0.4% MM, +1% 3M3M, +0.3% YY

CANADA: Politics Week: Parliament Opens With Early Election Threats

AUSTRALIA: Albanese Lines Up Budget for May Election

AUSTRALIA: Albanese Lines Up Budget for May Election

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

INR: USD/INR Hits Fresh Record High Amid Rising Equity Outflows, Dovish RBI

INR
IndiaGlobalEM BulletBulletAPACEmerging Market NewsRegion

USD/INR has finally breached 84.00 following ongoing RBI intervention over the past ~2 months to protect further rupee downside beyond this level.

  • Rising crude prices and Middle East tensions have underpinned the rally in USD/INR from the September lows, while the RBI rate decision earlier this week – which is seen to have opened the door to the start of rate cuts later in the year – will have added to the pressure on the local currency.
  • In addition, foreign outflows from local stocks and bonds have worsened the near-term outlook - Indian equities saw outflows of -$438m yesterday, with outflows over the past 5 sessions totalling -$5.04bn. Meanwhile, data compiled by Bloomberg shows bonds have seen $125m of outflows this month.
  • According to a VP at a local bank who spoke to Bloomberg, “There were interventions at 83.98 and 83.99 levels today as well but the outflows from assets have been very strong, especially from equities.”
154 words

To read the full story

Close

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.

USD/INR has finally breached 84.00 following ongoing RBI intervention over the past ~2 months to protect further rupee downside beyond this level.

  • Rising crude prices and Middle East tensions have underpinned the rally in USD/INR from the September lows, while the RBI rate decision earlier this week – which is seen to have opened the door to the start of rate cuts later in the year – will have added to the pressure on the local currency.
  • In addition, foreign outflows from local stocks and bonds have worsened the near-term outlook - Indian equities saw outflows of -$438m yesterday, with outflows over the past 5 sessions totalling -$5.04bn. Meanwhile, data compiled by Bloomberg shows bonds have seen $125m of outflows this month.
  • According to a VP at a local bank who spoke to Bloomberg, “There were interventions at 83.98 and 83.99 levels today as well but the outflows from assets have been very strong, especially from equities.”