The Indian rupee is likely to depreciate against the dollar on broad dollar strength amid more inflation-related losses for regional equities.
The rupee is expected to trade around 73.40-73.45 initially compared with 73.34 yesterday.
Asian currencies and equities extended losses and futures pointed to a third day of decline for the S&P 500 Index amid concerns over the U.S. inflation outlook.
Today’s data may fuel more debate on the price pressures in the U.S. Consumer inflation rate is expected to rise 3.6% in April and the core inflation rate could reach 2.3%. A higher-than-expected reading could lead to a selloff in risk assets and Treasuries.
The rise in inflation outlook is at odds with the Federal Reserve Chair Jerome Powell’s views. Powell has repeatedly downplayed concerns over sustained high inflation.
Treasury yields have ticked higher this week, but have been quite rangebound and below the highs reached in late March. The 10-year yield is currently at 1.62%, about 14 basis points below its recent highs.
25 Jun 2021 12:02 PM
Indian equities trade flat today, as gains in financial stocks were offset by a fall in Reliance Industries, although the indexes were set to rise about 0.6% each for the week.
25 Jun 2021 11:40 AM
China's yuan strengthened slightly against the U.S dollar after a stronger fixing by PBOC, but analysts expected renewed pressure on the Chinese currency if data later shows U.S. inflation rose further.
25 Jun 2021 11:12 AM
Gold advanced today and was set for its first weekly rise in four as the U.S. currency weakened, with market participants focusing U.S. inflation data after mixed signals from Fed officials on interest rate hikes.
25 Jun 2021 10:36 AM
Check how the Indian markets started their day
25 Jun 2021 09:09 AM
The Indian rupee is expected to appreciate against the U.S. currency following a rise in Asian currencies and equities on upbeat economic outlook.
25 Jun 2021 07:30 AM
Check What Happened Overnight In Financial Markets