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The Indian Rupee edges higher on the modest decline of the US Dollar on Friday.  Foreign inflows into Indian bonds could lift the INR, while higher crude oil prices might weigh on it.  The first reading of June’s PMI data from both India and the US is due on Friday.  The Indian Rupee (INR) gains ground on Friday due to the modest decline of the US Dollar (USD). The significant inflows into the Indian bond market ahead of India’s inclusion in the JPMorgan Emerging Market bond index at the end of this month are likely to boost the local currency in the near term.  On the other hand, the renewed Greenback demand from local importers, likely capital outflows, and the weakening in the Chinese Yuan might exert some selling pressure on the INR. Additionally, the rally in crude oil prices might drag the INR lower as India is the third-largest consumer of crude oil in the world. Investors will keep an eye on the first reading of the Indian HSBC Purchasing Managers Index (PMI) on Friday. Also, the US S&P Global PMI reports for June will be released.  Daily Digest Market Movers: Indian Rupee edges higher amid foreign inflows into Indian markets Foreign investors have sold a net of US$2.6 billion of local equities so far this calendar year, while US Dollar inflows into the debt markets have been strong at US$7.5 billion ahead of India’s inclusion in the JPMorgan Emerging Market bond index. Foreign inflows into Indian bonds could reach a decade-high of $2 billion around June 28, when they will be included in a widely-tracked JPMorgan index, although the RBI will lap up most of the USD to avoid the volatility in the INR, bankers said.  The preliminary India’s HSBC Services PMI is expected to drop to 60.0…

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Filed under: News - @ June 21, 2024 4:24 am