USDINR
On Tuesday, the Indian rupee is most likely to commence within a range-bound of 73.78 – 73.88 with negative sentiment as rising bond yields in the U.S. and Europe lured Japanese investors.
10-year Japanese government bond yields remain pinned near zero by the Bank of Japan's yield curve control policy, equivalent U.S. Treasury yields have soared to a three-month high, touching 1.516% overnight.
German 10-year bund yields, while below those on JGBs, have catapulted to the highest since the start of July at minus 0.191% from as low as minus 0.340% just a week ago.
Indian 10-year government bond yields last traded at 6.20%.
On Monday, India's market regulator tightened risk management rules for mutual funds, including specifying guidelines to identify, measure and report various risks, in an effort to protect the interest of investors in a fast-growing industry.
The Securities and Exchange Board of India said the new rules mandate the appointment of a chief risk officer, creation of risk management committees and maintaining metrics such as investment risk, liquidity risk and credit risk for each scheme.
Day Trend: - BUY ON DIP (for short term)
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