INR forecast: INR opens weaker at 6897 as against yesterday close of
Yesterdays main news came from sudden jump in U.S 10 year yield to 2.95% after news spread that Bank of Japan(BOP) planning to end it’s stimulus program and change its stand on monetary policy to beat low inflation.
CNY slipped below 6.81 this morning, however INR remains flat. The weakness comes after PBOC set CNY to its year lowest this morning at 6.7891 against yesterday fix of 6.7594. CNY has been falling on consistent basis after Trump indicated further plans to impose additional import tariff on Chinese goods.
With surging U.S 10 yields, falling CNY is overall not a good sign for INR. Any down-tick to be used to buy for imports for near term. For long term export, hedge part around 6910