Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Editor
Jaimitra Lunagaria
Sep 22, 2023 12:30PM ET
very good information
0
0
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Final hours: unlock premium data with Claim 60% OFF
Indian Rupee strengthens as JPMorgan includes India's government bonds in emerging market index
Published Sep 22, 2023 10:59AM ET
Updated Sep 22, 2023 10:59AM ET
© Reuters.
In a week marked by financial developments, the Indian rupee closed higher on Friday, settling at 82.93 against the U.S. dollar, a weekly gain of 0.3%. This performance comes on the heels of an announcement by multinational investment bank JPMorgan, revealing its plans to incorporate India's government bonds into its emerging market index.
This process is scheduled to commence on June 28, 2024, and will span over a period of ten months. Analysts predict that this move could generate inflows ranging from $22 billion to $30 billion.
B. Prasanna, head of global markets at ICICI Bank, told Reuters that passive inflows into Indian bonds could potentially escalate to as much as $50 billion over the forthcoming year if other foreign indexes follow suit and include Indian bonds.
Despite a rising dollar index, which reached a more than six-month high in Asia and was geared for its tenth consecutive weekly gain, the rupee managed to maintain its strengthening position. However, gains were limited due to importers purchasing dollars after the rupee opened at 82.8225 on Friday.
The potential for FTSE Russell and Bloomberg-Barclays - both of which maintain emerging bond indices - to include India is also under consideration. The upcoming FTSE Russell bond index review scheduled for September 28 will be observed with keen interest.
A foreign exchange trader at a state-run bank anticipates that the rupee will trade between 82.80 and 83.10 in the near term. This prediction takes into account potential downside risks such as rising U.S. Treasury yields and crude oil prices.
In the coming week, investors will be closely monitoring U.S. second-quarter GDP data and the core personal consumption expenditure inflation for August.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Related Articles
Comments (1)
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.