MARKET EYE WEEKAHEAD - Good times for fx/debt, more gains seen

Sun Jan 20, 2013 7:42pm IST

Foreign currency traders work inside a trading firm behind the signs of various world currencies, in Mumbai May 24, 2012. REUTERS/Vivek Prakash/Files

Foreign currency traders work inside a trading firm behind the signs of various world currencies, in Mumbai May 24, 2012.

Credit: Reuters/Vivek Prakash/Files

Related Topics

REUTERS - Indian forex and debt investors are feeling cautiously bullish, as the countdown begins for the RBI policy review on January 29.

More gains could be in store for both next week following the government's decision to partially deregulate diesel, in what has been a welcome measure of fiscal discipline.

Traders say the 10-year bond is likely to move in a 7.75-7.85 percent range until the policy review when the central bank is widely expected to lower rates by 25 basis points.

Rupee having hit a two-and-half month high is seen meeting with stiff resistance at 53.50 levels but if inflows into shares continue, the unit may rise towards 52 next week, say dealers.

Global risk will continue to remain important, with traders awaiting the U.S. presidential inaugration on Tuesday to see if Barack Obama gives any indications on the debt ceiling resolution plans.

KEY FACTORS/EVENTS TO WATCH

Wednesday - Bi-weekly money supply data

Friday - Markets closed for a local holiday

Weekly forex reserves, bank credit data

(Reporting by Swati Bhat)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Fuelling Change

REUTERS SHOWCASE

NSEL Fraud

NSEL Fraud

Govt orders Financial Tech to absorb NSEL, liabilities  Full Article 

Stalemate

Stalemate

WTO prepares for crisis talks as India keeps veto on global deal.  Full Article 

Deal Talk

Deal Talk

Smartphone repair company B2X steps up expansion with Indian deal.  Full Article 

Earnings Season

Earnings Season

HDFC Bank eyes pickup in corporate credit.  Full Article 

JLR China

JLR China

JLR sees 20 percent growth in China sales this year - exec  Full Article 

Iron Ore Imports

Iron Ore Imports

JSW Steel to boost iron ore imports by up to 80 percent.  Full Article 

Pollution Levels

Pollution Levels

Delhi braces for worst air quality this Diwali week.  Full Article 

Remembering Margerie

Remembering Margerie

Total’s "Big Moustache"- bon vivant, deal-maker and risk-taker .  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage