MNI: PBOC Net Injects CNY116.4 Bln via OMO Monday

MNI: China CFETS Yuan Index Down 0.21% In Week of Nov 8

MNI BRIEF: PBOC Has Room For More Easing : Research Head

MNI: PBOC Sets Yuan Parity Higher At 7.1786 Mon; +1.55% Y/Y

CHINA PBOC CONDUCTS CNY133.7 BLN VIA 7-DAY REVERSE REPOS MON

CHINA SETS YUAN CENTRAL PARITY AT 7.1786 MON VS 7.1433

MNI BRIEF: China Oct CPI Slows For 2nd Month To 0.3% Y/Y

EZ/UK Bond Supply Calendar: NE, UK, DE Auction on Tuesday

MNI: USDA: 2024/2025 CORN PRODUCTION EST 15.14B BSL

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

FED: Powell's Time Looks Up, Replacement Could Be Less Willing To Cut Rates?

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

INR: USD/INR Inches Towards Record High, Weaker Crude Overlooked

INR
IndiaGlobalEM BulletBulletAPACEmerging Market NewsRegion

The rupee re-approached record lows in what was a generally muted trading session as the climb in long-end US yields to multi-month highs continued to pressure both the local currency and as well as its regional counterparts. The RBI likely defended the 84.00 level for USD/INR again, Reuters report, as it has done so multiple times over recent sessions.

  • Citing local traders, Reuters say most exporters reckon that the risks that rupee will depreciate from here are much higher than it will appreciate. However, option markets do not reflect significant expectations of spot USD/INR appreciation, with the vol skew, while still showing in favour of calls, trading not far above the average of the past 50 days.
  • The gap lower in crude futures following Israel’s restrained retaliatory strike on Iran has largely been overlooked, with sustained outflows from local equities continuing to fuel INR downside instead – India saw outflows of -$575m on Thursday, with a total outflow of -$962m over the past 5 trading days.
  • With local data releases few and far between this week, focus will turn to US NFP data at the end of the week – though this is likely to be only a minor hurdle ahead of the US election on November 5.
205 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.

The rupee re-approached record lows in what was a generally muted trading session as the climb in long-end US yields to multi-month highs continued to pressure both the local currency and as well as its regional counterparts. The RBI likely defended the 84.00 level for USD/INR again, Reuters report, as it has done so multiple times over recent sessions.

  • Citing local traders, Reuters say most exporters reckon that the risks that rupee will depreciate from here are much higher than it will appreciate. However, option markets do not reflect significant expectations of spot USD/INR appreciation, with the vol skew, while still showing in favour of calls, trading not far above the average of the past 50 days.
  • The gap lower in crude futures following Israel’s restrained retaliatory strike on Iran has largely been overlooked, with sustained outflows from local equities continuing to fuel INR downside instead – India saw outflows of -$575m on Thursday, with a total outflow of -$962m over the past 5 trading days.
  • With local data releases few and far between this week, focus will turn to US NFP data at the end of the week – though this is likely to be only a minor hurdle ahead of the US election on November 5.