Market Commentary

Rupee Wrap - June 30, 2022 - Reliance Securites

Posted On : 2022-06-30 21:56:51( TIMEZONE : IST )

Rupee Wrap - June 30, 2022 - Reliance Securites

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee ended flat against the dollar on Thursday but weakened for a 3rd straight quarter against the dollar as aggressive policy tightening from the global central banks to curb inflation may lead to recessionary risks.

The Rupee ended unchanged at 78.97/dollar, compared with yesterday's close.

However, the local currency weakened about 4.2% in the April-June period, compared with almost a 2% weakness in the previous quarter.

Asian and EM currencies were mixed, while India's key equity gauge BSE Sensex ended little changed, as investors remained cautious ahead of the PCE Price Index data, a Fed favoured inflation gauge and jobless claims data tonight.

Crude oil remained weaker this Thursday afternoon trade in Asia, while FPI outflows continued and capped appreciation bias.

NDF is currently trading at 78.99-79.02/dollar this Thursday afternoon session.

India's fiscal deficit for April-May was 12.3% of the government's estimate for this financial year. The deficit was 8.2% of budget aim in the same period last year.

Indian bond yields ended flat on Thursday but rose for the 4th consecutive quarter, after the central bank kicked off its rate hiking cycle to control inflationary pressures.

The benchmark 6.54% bond maturing in 2032 ended at 7.45% on Thursday against 7.46% compared with yesterday's close.

In the overseas markets, the Dollar Index was trading with gains this Thursday afternoon trade in Asia ahead on safe-haven demand on renewed worries about higher rates and a global recession.

Investors remained cautious ahead of U.S inflation and jobless claims data.

The Euro and the Pound Sterling is struggling against the dollar this Thursday afternoon trade in Asia.

The Japanese Yen is trading with gains this Thursday afternoon trade amid safe haven bids for the currency.

Source : Equity Bulls


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