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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 ended the session 0.15% in the green, and the rupee has now erased the entirety of its YTD gains against the greenback. The pair has recorded a 0.64% bounce off last week’s multi-month lows, breaking both the 200-DMA and 50-day EMAs in the process.
- The YTD move comes despite the RBI's recent attempts to keep USD/INR below, or close to, 83.00 - however ING note that the bank seem to be allowing some asymmetric flexibility into its currency management. They add that there seems to be no issue with this policy continuing and anticipate the continuation until at least after the June bond inclusion has passed without incident.
- While there remains no up-to-date data on FX intervention, the bank were clearly active in the market in early 2024, with data today confirming the bank bought a net $1.95bln in FX spot in January (Prev. net $2.07bln in December), thereby building the FX reserve position further - which may cap USD/INR upside ahead.
- Local bond markets have shrugged off unscheduled supply (INR 120bln from both Maharashtra and Uttar Pradesh on Thursday), after states sold a record INR 502.1bln Tuesday and hold steady ahead of the FOMC decision. Local analysts see the potential for a more activist RBI after the Fed decision has concluded.
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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