KEY INDICATORS:
** One-month non-deliverable rupee forward at
82.08; onshore one-month forward premium at 13 paisa
** USD/INR NSE April futures settled on Monday at 82.0650
** USD/INR April forward premium at 6.5 paisa
** Dollar index inches lower to 102.36
** Brent crude futures up 0.6% at $84.6 per barrel
** Ten-year U.S. note yield at 3.4%
** SGX Nifty nearest-month futures up 0.2% at 17,724
** As per NSDL data, foreign investors bought a net $55.4
mln worth of Indian shares on April 7
** NSDL data shows foreign investors bought a net $37.7 mln
worth of Indian bonds on April 7
(Reporting by Nimesh Vora; Editing by Savio D'Souza)
By Nimesh Vora
MUMBAI, April 11 (Reuters) - The Indian rupee is likely
to open little changed to the U.S. currency on Tuesday, with
traders assessing the outlook for U.S. yields and keeping a
watch on importers' demand for the greenback.
The non-deliverable forwards indicate the rupee will open at around 81.98. That is the same as the close on
Monday when the currency reached an intraday high of 81.78
before easing due to, what traders said was, demand from oil
marketing companies.
"Yesterday's session was a reminder that below 82, there is
good demand for dollars, mostly from corporates," said a trader
at a private sector bank. At the 82 level, it's "natural there
will be interest on either side".
The rupee's near-term direction, he said, will be dictated
by the effect of U.S. inflation data, due on Wednesday, on
Treasury yields and dollar portfolio flows.
This is the last inflation print before the Federal Reserve
next meets, on May 2-3, and will play a pivotal role in its
decision on whether to hike interest rates.
"Another 0.4% month-on-month figure on core CPI (consumer
price index) – more than double the rate required over time to
take the U.S. back to the 2% year-on-year inflation rate target
– could nudge expectations for the upcoming Fed meeting higher,"
ING Bank said in a note.
The 2-year U.S. yield is hovering just shy of the 4% level.
The odds of a Fed rate hike have increased after the U.S.
jobs data on Friday. Futures are now pricing in a near 70%
chance of a 25 basis points hike. Further, investors are pricing in rate cuts from July
onwards, contrary to U.S. policymakers' indications.
Fed New York President John Williams said market
expectations are not a notable issue for him right now.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.