At the national level, the profits of the rupee are backed by healthy capital flows, an improved feeling in the local bond markets and the expectations of a stable RBI policy position | Photo credit: Vivek Prakash
The UPEE touched a maximum of four months on Monday in the entries related to the FPI in domestic capital markets, which increased in good corporate profits, and a weak dollar, even as a 10-year reference security performance (G-SEC) in the midst of excessive liquidity.
The rupee, which opened around 22 stronger lands, closed 24 lands to 85,1275 per dollar compared to the previous closure of 85,3675.
Arvind Kanasabai, executive vice president of Tamilnad Mercantile Bank, said that FPI tickets into Indian capital markets and a weak dollar index maintain well supported rupee.
SUPPORT FACTORS
The founder and CEO of Abhishek Goenka of India Forex Asset Management, observed that at the national level, the profits of the rupee are backed by healthy capital flows, an improved feeling in local bond markets and the expectations of a stable RBI policy stance.
“Market participants expect the minutes of the RBI meeting to obtain more signals on the trajectory of the rate and liquuidity measures. However, erratic policies and Trump changes in the communication of the Fed could introduce extreme volatility, which guarantees active monitoring.
10-year G-SEC remant (6.79 percent GS 2034), which touched a minimum of 6.30 percent, softened 5 basic points to close 6.32 percent (previous closure of 6.37 percent) on the back of a wide liquuidity and defrosting.
The last time the 10 -year reference point performance was at the level of 6.30 percent was in November 2021, Kanagasabai.
Nuvama’s richness, in a report, said: “The 10 -year reference point (6.79 GS 2034) opened little changed to 6.37%, but quickly fell into the morning session session by strength in the local currency, and thus it was a little more.
Posted on April 21, 2025