Italian yields have risen by 30bps in the last 1 month indicating a build up of Italian election risks which perhaps weighed down on the Euro yesterday and provided the dollar with some strength. A decrease in BOJ's purchase of Japanese bonds led to JPY appreciation in the morning today although Nikkei continues to trade near all time highs of 24k.
FII flows into Indian equities have picked up in 2018 (Rs. 2500 cr in 2018 till date). While GovDebt auction of Rs.6600 crs yesterday went strong and should result in further inflows in the near term. Corporate bond limits of Rs. 13k crores is also available and should attract inflows. Therefore during the validity of these limits for the next 2 weeks we should see well over 1 bn USD of inwards into Indian debt considering that yields are also attractive.
USDINR 1m NDF is trading 4p left as compared to 6p left yesterday morning. EM currencies are flat to slightly right since yesterday. Asian equities are trading flat to mildly positive only. For today USDINR could be well bid but overall the flows look supportive of INR. CMP 63.51, Range 63.60-63.45. I would remain a seller on upticks.
No comments:
Post a Comment