Market weekahead: Debt, FX await RBI policy decision
Debt and forex market await key decisions from the Reserve Bank of India's (RBI) first quarter policy review meet on July 30.
July 29, 2013 / 08:20 IST
Indian currency and debt markets will remain range-bound ahead of the Reserve Bank of India's mid-quarter monetary policy review on Tuesday.
The RBI is widely expected to keep interest rates and cash reserve ratio on hold but investors will be focused on its statement after it raised short-term funding costs to shore up the rupee. Those measures are starting to have an impact. The rupee is expected to continue its rally next week with a slightly weaker dollar globally also aiding sentiment.Also read: Indian shares await RBI decision, earningsDollar movements will also be watched as the Federal Reserve concludes a two-day meeting on July 31.The 10-year bond yield is seen holding in a broad 8.05 to 8.30 percent range, traders say.Investors will be focused on the overnight cash rate which is expected to remain elevated as the RBI's latest measures to drain rupee liquidity from the system take effect from July 27.Cash rates surged to as high as 10.25 percent on Friday.Key factorsTuesday RBI review decision (due 1100 IST/ 0530 GMT)Wednesday Monthly fiscal deficit dataFridayForeign exchange reserves data Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
