HALISTER1: INSIDE INDIA: INR Drops to 2-Month Low as DBS Sees More Weakness

INSIDE INDIA: INR Drops to 2-Month Low as DBS Sees More Weakness

(Bloomberg) -- Rupee falls for a fifth day, headed for its longest losing streak this year after two regional Fed presidents said at least two rate hikes by the U.S. central bank may be warranted this year.
  • ’’The rupee has broadly moved in line with the global dollar strength and recent rebound in oil prices,’’ says Ashish Vaidya, Mumbai-based head of trading at DBS, in interview
    • INR may drop to 67-67.50 per USD levels near term as the market goes long USD on approach of June FOMC
  • BlackRock likes India bonds where softer inflation and fiscal consolidation pave way for accommodative monetary policy
  • Rupee down 0.1% to 66.9075 per dollar, fell to 66.97, weakest since March 16
  • Foreign investors sold net $14.4m in local equities on May 16: CDSL; they sold net $65.8m in local debt on May 16
  • Public banks were biggest buyers of govt debt at 12.9b rupees on May 17; primary dealers were biggest sellers at 11.2b rupees: CCIL data
  • Yield on 7.59% govt bond due Jan. 2026 rises 1 bp to 7.47%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Ashish Vaidya (DBS Group Holdings Ltd)

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