Mumbai: Rupee on Monday strengthened to the highest level in almost two months aided by the dollar influence, while the benchmark of the 10-year bond results reached a new two-year high due to track uptick in the treasury results and global crude oil prices.
The US 10-year treasury yield rose to a two-year high of 1.808 percent after a mixed work report and because investors began to determine prices on previous interest rates by the US Federal Reserve.
The results of the 10-year bond of India’s benchmark ended at the peak of the 6.59 percent session, the highest since January 31, 2020.
has closed at 6.54 percent on Friday.
“Crude oil prices jumped with 5 percent amid supply constraints despite concerns on the spread of eryikron.
The absence of demand and risk of excess inventory fears also continued to burden the market,” said UPASNA BHARDWAW, economist in the Mahindra Bank box.
Traders will now monitor retail inflation data for December due on Wednesday for short-term instructions.
A Reuters poll expects inflation to increase to a six-month high of 5.80 percent last month, compared with 4.9 percent in November.
The 10-year results are seen with a range of 6.50 percent to 6.60 percent for a week.
Oil prices rose on Monday as a supply disruption in Kazakhstan and Libya offseting fears that came from a rapid global increase in omicron infection.
India imports more than two-thirds of oil requirements and high crude oil prices pushing its import bill, hurting rupees while also triggering import inflation in the country.
The wider developing market and market currency was also higher after last week’s fall, because investors focused on omicron cases and US inflation because of this data.
The converted rupee partially ended at 74.04 / 05 per dollar, versus closing Friday 74,3050.
The Close was the strongest since November 8 and the unit 0.4 percent rose on the world’s biggest one-day increase since December 30.
Traders expect the flow of dollars to the domestic stock market and other global bond sales to continue to help the rupiah.
It is expected to survive in the range of 73.80 to 74.80 in the near future.
The index shared BSE and NSE both rose 1.1 percent on Monday.
“We hope that the power of the USD will continue because market participants assess the global inflationary pressure and the normalization rate of the next policy,” Bhardwaj said.
“However, capital inflows can still continue in India in the midst of inclusion expectations in the global index, helping INR outperformed,” he added.