We are expecting , Rupee commence Friday session with negative sentiment as greenback firm on Thursday after rebounding overnight from three-year lows following a spike in U.S. bond yields. opening could be very far from last session closing levels ( 72.43/44).
Last trading session , USDINR opened at 72.31/32 levels as well as found strong support at opening levels then jump up to intraday high at 72.52/53 levels before finished at 72.43/44 levels .
sudden spike in USDINR will be opportunity for exporters to cover short to medium term exposure .
INTRADAY RANGE - 72.44 ( 72.62 - 73.15 ) 73.32
GLOBAL OUTLOOKS
Government bonds, and particularly U.S. Treasuries, have become the focal point of markets globally, which have aggressively moved to price in earlier monetary tightening than signaled by the Federal Reserve and its peers.
The rise in yields has long been mostly seen as a story of improving growth expectations, if anything padding risky assets, but the overnight move notably included a steep lift in real rates and a bringing forward of Fed lift-off expectations.
Yields on the 10-year Treasury note eased back to 1.494% from a one-year high of 1.614%, but were still up a startling 40 basis points for the month in the biggest move since 2016.
The scale of the selloff prompted Australia's central bank to launch a surprise bond buying operation to try and staunch the bleeding, helping yields there come off early peaks.
Asian stocks skidded to month lows as a rout in global bond markets sent yields flying and spooked investors amid fears the heavy losses suffered could trigger distressed selling in other assets.
The surge in Treasury yields also caused ructions in emerging markets, which feared the better returns on offer in the United States might attract funds away.
Currencies favored for leveraged carry trades all suffered, including the Brazil real, Turkish lira and South African rand.
The jump in yields has tarnished gold, which offers no fixed return, and dragged it down to $1,767 an ounce from the week's high around $1,815.
Oil prices held near 13-month highs, with profit-taking limited by a sharp drop in U.S. crude output last week due to the winter storm in Texas.
Comments