USD-INR pair continues to trade weak: Ashutosh Raina

Ashutosh Raina, HDFC Bank said, "The dollar index touched 9-month high of 98.85, with dollar continuing to rise against basket of major currencies on expectations of Fed hiking rates in December, with probability of December hike rising to almost 80 percent. The USD-INR pair continues to trade weak close to 67/USD levels. We expect the pair to trade weak on the back of strong dollar and also the FCNR redemptions."He further said, "The bonds continue to consolidate with 10 year bond yields hovering around 6.85 pct. With expectations of future OMOs receding and overall weak risk sentiment, expect the bonds to trade in a tight range with slightly weakening bias."