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The Reserve Bank of India on Friday injected Rs 50,000 crore into the banking system by purchasing government securities through an open market operation (OMO).The liquidity infusion comes ahead of advance tax and goods and services tax (GST) payments scheduled later this month before the fiscal year-end.System liquidity was estimated to be in surplus of about Rs 2.49 lakh crore on Thursday.India’s benchmark 10-year bond yield remained flat at 6.68% on Friday, supported by the liquidity injection. Last week, the central bank purchased government securities worth Rs 57,210 crore in the secondary market to contain bond yields amid the West…
Nordea’s Torbjörn Isaksson reports that Swedish CPIF and CPIF ex energy were confirmed at low year-on-year levels, with seasonally adjusted core measures well below the 2% target. Despite a bounce in core services inflation, overall pressures remain subdued. Nordea expects core inflation to fall further and the Riksbank to keep its policy rate unchanged at 1.75% next week.Soft CPIF data support steady Riksbank policy”All in all, February inflation came out well in line with our forecast.””Inflationary pressures are low and we expect core inflation to drop further in the coming months.””The war in the Middle East and the rising energy…
India’s foreign exchange reserves fell to $716.81 billion in the week through March 6 from $728.49 billionin the previous week, Reserve Bank of India data showed on Friday.The $11.68 billion decline in reserves last week came amid heavy dollar sales by the central bank to support the rupee against pressure stemming from the Iran war and the surge in oil prices. The rise in US yields and the dollar strength further contributed to the drop in reserves, analysts said.Gaura Sen Gupta, economist at IDFC FIRST Bank, estimates the decline in reserves reflected net dollar sales of about $6.1 billion by…
The Reserve Bank of India stepped up its government bond purchases from the secondary market to a record level in the week ended March 6, data showed on Friday, as the central bank tried to stabilize the market roiled by the Middle East war.The Reserve Bank of India net bought bonds worth 572.10 billion rupees ($6.20 billion) over the four trading sessions in the week, making it the third consecutive week of purchases. The settlement of the transactions takes place one day after the trade.* Infusing liquidity is the main purpose of bond purchases, but they also impact yields* RBI…
Commerzbank notes that the Strait of Hormuz closure has also halted Qatari LNG shipments, normally one-fifth of global supply, driving TTF natural gas to almost EUR 70/MWh. While EU direct exposure to Qatar is limited, Asian buyers are expected to switch to US LNG and Russia may redirect remaining flows, keeping TTF high until Qatari exports resume.Qatar LNG halt tightens global gas”Shipments of liquefied natural gas (LNG) from Qatar were also interrupted by the closure of the Strait of Hormuz. These shipments normally account for around one-fifth of the global LNG supply.””As a result, the TTF natural gas price rose…
The rupee fell to a record low on Friday on concerns that the Iran war-induced surge in oil prices could disrupt the South Asian nation’s growth-inflation dynamics and dent capital flows, with traders also pointing to elevated offshore dollar bids.The rupee weakened to 92.4750 per dollar, eclipsing its previous all-time low of 92.3575 hit on Thursday. It closed at 92.4550, down 0.7% on the week.Likely intervention helped limit the currency’s losses, traders said.Investors are bracing for a prolonged conflict as the Middle East war nears the two-week mark, keeping energy prices elevated. The conflict has also prompted foreign investors to…
The Indian rupee fell to a record low on Friday on concerns that the Iran war-induced surge in oil prices could disrupt the South Asian nation’s growth-inflation dynamics and dent capital flows, with traders also pointing to elevated offshore dollar bids.The rupee weakened to 92.4750 per dollar, eclipsing its previous all-time low of 92.3575 hit on Thursday. It closed at 92.4550, down 0.7% on the week.Likely intervention helped limit the currency’s losses, traders said.Investors are bracing for a prolonged conflict as the Middle East war nears the two-week mark, keeping energy prices elevated. The conflict has also prompted foreign investors…
Statistics Canada will release its Labour Force Survey on Friday, and market participants expect a modest uptick in job creation in February, with the Employment Change foreseen at 10K following the -24.8K in the previous month. At the same time, the Unemployment Rate is forecast at 6.6%, following the 6.5% posted in January. Employment data gains relevance ahead of the Canadian Consumer Price Index (CPI) data scheduled for next Monday, and the Bank of Canada (BoC) monetary policy announcement a couple of days later. The BoC left its benchmark interest rate unchanged at 2.25% for a second consecutive time at…
The Indian rupee fell to a lifetime low on Friday, strained by worries over how the Iran war-spurred surge in oil prices will impact the growth-inflation dynamics and capital flows for the South Asian economy. A prolonged Middle East conflict could significantly worsen the rupee’s outlook, analysts said, warning that persistently high energy prices may push the currency beyond 95 per dollar. The rupee dropped to 92.4325 per dollar, eclipsing its previous all-time low of 92.3575 hit on Thursday. It was down about 0.2% on the day and has lost 1.5% since the Iran war broke out.It would likely have…
The rupee hit a fresh all-time intra-day low of 92.44 against the US dollar on Friday, down 19 paise from its previous close, as rising global crude oil prices amid the raging West Asia conflict kept international markets on the edge.A stronger greenback, heavy FII outflows and sustained selling in the domestic equity markets further weighed on the rupee, according to forex traders.At the interbank foreign exchange, the local unit opened at 92.33 and kept losing ground to hit a fresh intra-day low of 92.44 against the US dollar, down 19 paise from its previous close.The rupee fell 24 paise…