The Indian rupee made a flat opening at 74.16

Abhishek Goenka IFA Global

The Indian rupee made a flat opening at 74.16 levels and traded in the range of 74.15-74.25 with a sideways bias. The pair finally closed the day at 74.21 levels. The rise in August Brent crude futures slightly dented sentiment for the Indian unit. However, sales of the greenback by foreign banks likely for foreign fund inflows into Indian companies looking to raise capital from offshore investors prevented the unit from falling beyond USD 74.25 a dollar.

German consumer sentiment improved more than expected heading into July. The GfK German consumer sentiment index rose to -0.3 points, its highest level since August last year and higher than a revised reading of -6.9 points in the previous month. The RBI set the reference rate for USDINR at 74.17 levels. The RBI did not sell any of its planned Rs 14,000 crore of the benchmark 10-year bond in today’s auction, which may indicate its discomfort in breaching the limit outstanding in the bond, and that a new 10-year bond could be coming any time soon. In today's G-Sec auction, the RBI sold a little more than Rs 12,000 crore, less than half of the Rs 26,000 crore planned through three bonds.

The 10-year G-Sec benchmark closed the day at 6.0285% levels. The 1-year dollar/rupee forwards premium closed at 4.37% as against the 4.39% recorded in the previous day. The oil prices slip but remained on track for a fifth consecutive weekly gain on expectations demand growth will outstrip supply and OPEC+ producers will be cautious in returning more supply to the market from August.

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Abhishek Goenka

IFA Global

Mr. Abhishek Goenka is the Founder and CEO of IFA Global. He pilots the IFA Global strategic direction with a focus on relentlessly improving the existing offerings while constantly searching for the next generation of business excellence.

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