INR was marginally weaker, monitoring movement in oil prices. But it is trading stronger today, while other Asian currencies are trading lower.
Sonal Badhan,
Economist,
Bank of Baroda
Mumbai, March 18, 2024: Industrial production in the US rebounded (MoM) in Feb’24 as it rose by 0.1% (est.: 0%), following downwardly revised (-) 0.5% decline noted in Jan’24. Improvement was led by business equipment, construction and materials. On the other hand, University of Michigan’s consumer sentiment index eased in Mar’24 to 76.5 from 76.9 in Feb’24, dragged by sub-index of consumer expectations. Current conditions index remained unchanged. Elsewhere in Asia, in China, retail sales growth in Jan-Feb’24 slowed to 5.5% (est.: 5.6%) from 7.4% in Dec’23, despite it being a festive season in that period. Industrial production on the other hand jumped by 7% (est.: 5.3%) in Jan-Feb’24 from 6.8% in Dec’23. FAI, an indicator of investment, also beat expectations (3.2%) and rose by 4.2% in Jan-Feb’24 versus 3% in CY23. This week, markets await decisions of US Fed, BoE, BoJ, and RBA.
Except China, global yields closed higher. US 10Y yield rose by 2bps as uncertainty around the timing and quantum of Fed rate cuts remains, owing to revival in price pressures and sustained economic momentum. India’s 10Y yield rose by 2bps, as pressure from elevated oil prices remains. It is trading further higher today at 7.08%.
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