Oil, foreign flows in focus for rupee; bond traders eye rate-hike bets
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The Indian rupee is likely to stay steady this week as oil prices and foreign flows remain in focus.
- ✓The currency ended at 94.96 on Friday.
- ✓Traders expect the rupee to trade between 94 and 95.50, while bond yields face pressure from growing bets on aggressive rate hikes.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Reuters
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
MUMBAI, Oct 19 (Reuters) - The Indian rupee is likely to be steady over a holiday-truncated week, with oil prices and foreign portfolio flows in focus, while bond yields could face headwinds from tightening banking system liquidity and growing bets on aggressive rate hikes.
Last week, the rupee posted its best week since March with a 2% gain as the central bank rolled out a series of measures to shore up the local unit. It ended at 94.96 on Friday.
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The Reserve Bank of India has made it costlier for importers to hedge future current-account payments, raised the cost for banks of buying foreign currency for certain transactions, and opened a dedicated window to supply state-run oil companies with dollars directly from its foreign-exchange reserves.
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Reuters
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