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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.
INR
USD/INR sits in the 82.70/75 region currently. We were above 82.80 not long after the open. As we edge closer to the 83.00 level, RBI intervention risks will no doubt firm. Like elsewhere in the region, the rupee is being weighed by a weaker equity market backdrop, with the Nifty now 10% off Dec highs. This leaves the index in technical correction territory.
- With just over $2bn in net equity inflows month to date, this could weigh on the INR if we see renewed outflow pressures.
- Yesterday's trade balance was slightly better than expected for Feb (-$17.4bn, -$19.2bn forecast) and we should see further improvement given on-going improvements in India's terms of trade as commodity prices continue to ease.
- This isn't doing much for the rupee though. The currency continues to give back recent gains and is now back to flat for the month.
- The data calendar is fairly quiet now with just Q4 BoP figures due at some stage between now and the end of the month.
Fig 1: USD/INR Nearing 83.00 Resistance Level
Source: MNI/Bloomberg
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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