Oil Prices Surge as U.S.-Iran Tensions Fuel Supply Fears 
Asian Stocks Fall as Bond Yields and Oil Prices Surge 
Asian Currencies Mixed as Yen Weakens, RBA Hike Looms 
Best Gold Stocks to Buy Now: AABB, GOLD, GDX 
Japan Factory Output Unexpectedly Falls 1.7% in August 
Asian Currencies Mixed as Yen Slides on BOJ Rate Signals 
Gold Holds Near Seven-Week Low as Fed Rate Hike Bets Rise 
Gold Prices Slip as High Treasury Yields Weigh on Bullion 
US Dollar Hits Two-Month High as Aussie, Pound Slide 
US Treasury Bond Buybacks Fall Short Despite Expanded $6 Billion Cap 
Add as a preferred source on Google
In the near-term, the USD/INR currency pair is expected to remain stuck in its current trading range of 64 to 65. India’s foreign reserves climbed to a record high of USD381.17 billion as of June 2. It comes as no surprise since the INR’s strength had spurred the government’s concerns. Increasing foreign currency stockpile could filter out extreme volatility in local FX market and slow the pace of appreciation in the INR, Scotiabank reported.
The nation’s CPI inflation dropped to 2.18 percent y/y in May from 2.99 percent a month earlier, compared to market forecasts of 2.40 percent. The base effect suggests an even softer retail inflation down the road, although the GST is on track for its rollout from July 1.
In addition, normal monsoon rainfall forecasted by the India Meteorological Department (IMD) would keep the nation’s retail inflation benign. The central bank forecasted India’s headline inflation to average a range of 2.0-3.5 percent in the first half of FY2017-18 and 3.5-4.5 percent in the second half, down from 4.5 and 5.0 percent respectively estimated earlier on April 6.
"We would sell USD/INR should the pair break below the 64 support level," the report said.
