• INR could be fully convertible in next 5 years, Raguram Rajan stated.
  • Indian central bank ponders repo bids fall to 31.75 bln rupees.
  • RBI- FX reserves at US$354 bln & Cash balance rises at 3.71 trn rupees.
  • Rajan confirms no more policy measures on interest rate in near term as inflation forecasts in focus.

The governor says “he does not want to be a rockstar in trajectories (FX, fiscal policy, governance etc) which are not under the purview of his duties.”On the flip side,

  • US failed to hold onto its gains despite upbeat US employment.
  • Trade balance fueled optimism over outlook of Q2 growth.
  • US dollar index came off to 94.96 levels.
  • US treasury debt yields hit 7 month highs bolstered by private sector employment report.

Currency Futures Roundup:Long June Futures of USD/INR above 64.25 for targets of 65 levels with firm stop loss at 63.7725.Short June Futures of USD/INR below 64 levels for targets upto 63.6425 with SL at 64.2066.Risk reward ratio on long-side = 0.6366.Risk reward ratio on short-side = 0.5779.

The material has been provided by InstaForex Company – www.instaforex.com