Rupee And Bond Update - Jan 11, 2023: Reliance Securities

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Reliance Securities Report

The Indian rupee could open stronger this Wednesday morning amid hopes that the Fed could slowdown aggressive rate hike stance.

The local unit could continue to gain this Wednesday with the support of cheaper energy prices and high domestic interest rates.

The local could also track gains in the non-deliverable forward markets which tested a high of 81.54 late Tuesday. Currently the NDF is at 81.65.

So, the rupee could open at around 81.6000 to 81.6500 per dollar this Wednesday morning versus a close 81.7850 on Tuesday. The trading band is 81.30 to 82.10.

Most of Asian peers were weaker this Wednesday morning tracking a small rebound of the dollar and could cap gains, but further gains in the equity markets could aid sentiments.

Key triggers this week will be inflation data on the domestic side on Thursday.

In the overseas markets, the U.S. dollar was trading marginally higher this early Wednesday morning in Asian trade and lack of any major triggers today could keep the markets range bound.

Key triggers this week will be U.S. inflation data on Thursday.

The dollar index could remain range within a broad trading band of $103.00 to $104.00.

Indian bond yields are expected to open marginally higher this Wednesday morning tracking a recovery in the U.S. peers.

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