Global Funds Pile Into India Bonds as Oil Cools

Global Funds Pile Into India Bonds as Oil Cools Good morning... I’m Pratigya Vajpayee in New Delhi with a mood check on the markets before the open. Keep an eye on the rupee today. It strengthened to 94.72 per dollar by the close on Monday, sitting right on the 50-day moving average line, which it hasn’t broken convincingly for more than a year. Finally, there are signs it’s gaining traction — with the interim US-Iran deal to reopen the Strait of Hormuz in place, strategists at Deutsche Bank named it one of its four top currency picks because RBI policies “will support both near-term inflows and longer-term structural demand.” Renewed foreign buying in bonds and signs of risk appetite returning to smaller stocks add to the reasons for optimism. One key determinant will be the monsoon. Finance Minister Nirmala Sitharaman said the government is preparing for a weaker-than-normal rainfall this season, while stressing that adequate food stocks are in place to manage any supply disruptions. The other big event this week is the Fed’s meeting on Wednesday. Economists are expecting the central bank to keep interest rates unchanged as it waits to see how the Iran war’s oil-price shock ripples through the economy.