20 Feb 2023

Inverted US yield curve to drive down INR

3 month UST yields crossed 5% drawing in flows to USD from other currencies including INR.

author dp
Team INRBonds
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       USD traded higher driven by possible rate hike and fall in inflation last week. US consumer inflation stood at 6.4% in Jan 23 as compared to 6.5% in Dec 22. US dollar index rose by 0.24% on a weekly basis.

       Retail Sales in the United States increased 6.4% year-on-year in January of 2023, above a 5.9% increase in both December and November 2022.

       US initial jobless claim declined to 194,000 in the week ending February 11th, down from the previous week's revised level of 195,000.

       Japanese Yen depreciated by 1.88% against USD on a weekly basis.

       Indian rupee traded lower last week as domestic inflation in Jan 23 rose to 6.52% as compared to previous month.

 

 

 

 

 

 

 

 

 

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