Rupee And Bond Update - Jan 16, 2023: Reliance Securities
The rupee could open at around 81.1000 to 81.1200 per dollar this Monday morning versus a close 81.3250 on Friday.
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Reliance Securities Report
The Indian rupee could open stronger this Monday morning and remain strong this Monday tracking a weak dollar and a possibility of smaller rate hike from the Fed in February.
The rupee could open at around 81.1000 to 81.1200 per dollar this Monday morning versus a close 81.3250 on Friday.
The trading band for the rupee this Monday is between 81.00 to 81.50.
Most of Asian peers were stronger this Monday morning while stable oil prices and the recent fall in Treasury yields could aid the local unit.
However, attractive rate for importers and possibility of dollar buying intervention by the Reserve Bank of India could limit sharp gains.
In the overseas markets, the U.S. dollar started weaker this early Monday morning in Asian trade and could continue to remain under pressure this week as well weighed down by easing inflation in U.S. leading to smaller rate hikes by the Fed.
However, volumes in the U.S. could remain low due to Martin Luther King, Jr. Day holiday.
On the calendar front this week in the U.S., investors will await retail sales, producer price inflation and several housing indicators.
The yen strengthened against the greenback this Monday morning as traders, ramped up bets that the central bank could make further tweaks to its yield control policy.
The Bank of Japan Monetary Policy meeting is on Wednesday.
Indian bond yields are expected to open marginally higher this Monday morning tracking a rise in oil prices, dampening inflation outlook.
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