USD/INR fell further Friday, closing the......>

INDIA: USD/INR fell further Friday, closing the session just a few pips above

the day's lows and marking the lowest finish for the pair since August 10th.

Today's lower close was the 9th in 11 sessions, extending the losing streak for

March to just under 3.5%.

- NSE data remains key, with the overnight release showing 31bln INR ($449mln)

of new foreign inflows into Indian equities, government and corporate bonds

during the Friday session alone. The inflow continues to appear to be attempting

to front-run the RBI's upcoming OMO operations, which are expected to benefit

shorter-dated bonds first and foremost, with most analysts (both local and

overseas) expecting the end-result to be a steeper sovereign curve and a lower

USD/INR rate.

- Outside of speculation on RBI activity, markets keep an eye on the upcoming

elections, with a gov adviser today stating that reforms are to continue

regardless of the eventual winner (first election phase begins 11 April).

- Technicians continue to watch for the formation of death cross (50 < 100-dma)

in USD/INR, which may be seen as a trigger for further losses.