{"id":116647,"date":"2021-06-17T08:49:14","date_gmt":"2021-06-17T08:49:14","guid":{"rendered":"https:\/\/fin2me.com\/?p=116647"},"modified":"2021-06-17T08:49:14","modified_gmt":"2021-06-17T08:49:14","slug":"india-rupee-at-six-week-low-bond-yields-rise-after-hawkish-fed-signal","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/india-rupee-at-six-week-low-bond-yields-rise-after-hawkish-fed-signal\/","title":{"rendered":"India rupee at six-week low; bond yields rise after hawkish Fed signal"},"content":{"rendered":"<p>MUMBAI (Reuters) &#8211; The Indian rupee weakened to its lowest level since early May on Thursday while bond yields rose as the U.S. Federal reserve stunned investors by signalling it might raise interest rates as early as 2023, faster than assumed.<\/p><figcaption>FILE PHOTO:  An India Rupee note is seen in this illustration photo June 1, 2017. REUTERS\/Thomas White\/Illustration\/File photo<\/figcaption><p>The partially convertible rupee was trading at 73.79\/80 per dollar at 0816 GMT compared with its close of 73.3225, after touching 73.83, its lowest since May 6.<\/p>\n<p>India\u2019s benchmark 10-year bond yield was down 1 basis point at 6.04% but most other bond yields rose 3-4 basis points tracking the U.S. benchmark bond yield which jumped 7.5 basis points.<\/p>\n<p>\u201cForward guidance from the Fed proved to be more hawkish than what the market expected,\u201d Eugene Leow, strategist at DBS wrote in a note.<\/p>\n<p>Traders said the surge in the dollar index to two-month highs following the Fed\u2019s comments on possible rate increases and a significantly higher inflation projection weighed on sentiment for all Asian currencies.<\/p>\n<p>Long bets on most of Asia\u2019s emerging currencies were trimmed, a Reuters poll showed on Thursday, as investors weigh the prospect of tighter monetary settings as the U.S. recovery outperforms, while the COVID-19 situation locally is brought under control.<\/p>\n<p>Traders however believe that central bank intervention will likely stabilise the rupee in the short-term but it would also depend on how things pan out globally.<\/p>\n<p>\u201cGiven the strength in the dollar, it is likely that the USD\/INR could now move into a new trading range,\u201d HDFC Bank economists wrote in a note.<\/p>\n<p>\u201cHowever, given the volatility in the market, that usually follows such events (Fed policy), we are holding off on changing our near-term call before the market digests the news and recent dollar moves show some resilience,\u201d they said.<\/p>\n<p>Bond traders are awaiting the outcome of the 300 billion rupees worth of bond repurchase auction, which includes the benchmark bond apart from five other papers, while the RBI is also scheduled to buy 100 billion rupees worth of state bonds.<\/p>\n<p>Source: <a href=\"https:\/\/www.reuters.com\/article\/india-markets\/india-rupee-at-6-wk-low-bond-yields-rise-after-hawkish-fed-signal-idUSL3N2NZ2EC\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>MUMBAI (Reuters) &#8211; The Indian rupee weakened to its lowest level since early May on Thursday while bond yields rose as the U.S. Federal reserve [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":116646,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>India rupee at six-week low; bond yields rise after hawkish Fed signal - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/markets\/india-rupee-at-six-week-low-bond-yields-rise-after-hawkish-fed-signal\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"India rupee at six-week low; bond yields rise after hawkish Fed signal - Fin2me\" \/>\n<meta property=\"og:description\" content=\"MUMBAI (Reuters) &#8211; 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