USD/INR snapped a six session losing streak...>

INDIA: USD/INR snapped a six session losing streak Tuesday, but not before the

lowest levels intraday since early August last year. The pair closed at 68.9662

just above Monday's highs, showing that the near-term downward momentum may have

slowed somewhat as markets book profits on the recent decline. The halt today

was presaged by data cited here yesterday showing that while global funds

continue to pile into Indian equities, corporates and sovereign bonds, locals

were actually net sellers of equities during the Monday session.

- Nonetheless, the Sensex index remains on track to top 38,989 - the 2018 high -

should recent upside momentum be maintained. Goldman Sachs overnight raised

Indian equities to 'overweight' in anticipation of a pre-election rally eyeing

12,500 for the Nifty 50 as a 12m target.

-The pullback in the INR came alongside weakness in Indian sovereign bonds

Tuesday, with some citing reports in Cogenesis stating the RBI may favour FX

swap operations to manage liquidity going forward over their current OMO

activity, as the government raise concern over the proportion of government debt

held at the central bank.