Globally, Risk
off sentiments took a pause amid lack of fresh escalation between US and Iran. For
instance, USD/JPY rebounded to 108.50, Brent crude slipped to $68.06 and gold
eased to $1558 levels. On other hand, EUR/USD surged to 1.12 handle after
release of improved PMI numbers. German service PMI printed 52.9 and Euro area
service PMI printed 52.8 against previous reading of 52.4. EURUSD pair will
take further cues from CPI numbers, due to release later during the day.
On domestic front, RBI announced a major reform to allow “Authorised dealer undertake customer (persons resident in India and persons resident outside India) and inter-bank transactions beyond onshore market hours”. This move is expected to improve share of onshore volume vis-à-vis offshore. It is noteworthy that 24 hour rupee trading was one of the recommendations by the Task Force on Offshore Rupee Markets.
RBI concluded third Operation Twist by buying INR 10,000 cr bonds, with share of 10 year bond just INR 1,111 Cr and selling INR 10,000 cr bonds. Benchmark 10 yield should have minimal impact of this particular operation. It is noteworthy that in previous two occasions RBI had sold less than notified INR 10,000 cr worth bonds. On currency front, USDINR pair opened the session on a weak note at 71.76 against previous close of 71.94 levels. USDINR pair has first resistance at 71.80 levels and second resistance at 72.10. USDINR pair has first support at 71.50 levels and second support at 71.35. Range for day seen as 71.66-71.95.
On domestic front, RBI announced a major reform to allow “Authorised dealer undertake customer (persons resident in India and persons resident outside India) and inter-bank transactions beyond onshore market hours”. This move is expected to improve share of onshore volume vis-à-vis offshore. It is noteworthy that 24 hour rupee trading was one of the recommendations by the Task Force on Offshore Rupee Markets.
RBI concluded third Operation Twist by buying INR 10,000 cr bonds, with share of 10 year bond just INR 1,111 Cr and selling INR 10,000 cr bonds. Benchmark 10 yield should have minimal impact of this particular operation. It is noteworthy that in previous two occasions RBI had sold less than notified INR 10,000 cr worth bonds. On currency front, USDINR pair opened the session on a weak note at 71.76 against previous close of 71.94 levels. USDINR pair has first resistance at 71.80 levels and second resistance at 72.10. USDINR pair has first support at 71.50 levels and second support at 71.35. Range for day seen as 71.66-71.95.
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