Rupee appreciates 27 paise to open at 82.82 a dollar as JPMorgan announces India bond inclusion

The 7.18% 2033 Government Bond yield opened at 7.08% versus Thursday’s close of 7.14%.

The US dollar index reached 105.74 on Thursday, the highest in over six months, while the US 10-year Treasury yield climbed to 4.50%, the highest since 2007, on expectations that the US Federal Reserve will hold rates higher for longer.

On Thursday, the rupee depreciated marginally to end 2 paise lower at 83.09.

Indian government bonds will be included in the Government Bond Index-Emerging Markets index and the index suite, JPMorgan said on Friday.

The inclusion will start on June 28, 2024, and extend over 10 months with 1% increments on its index weighting. India is expected to reach the maximum weighting of 10%, JPMorgan added.

Read here: JPMorgan to include India in its emerging market debt index, paving the way for billions in inflows

The index inclusion could result in inflows of about $24 billion into eligible government bonds from the start of next year to May 2025, IDFC First Bank said in a note, Reuters reported.

Crude oil prices traded higher, limiting upside for the rupee.

Brent futures rose 0.55% to $93.81 a barrel, while US West Texas Intermediate crude (WTI) gained 0.71% to $90.27.

On the domestic front, the Indian benchmark equity indices, Sensex and Nifty were trading marginally lower in the pre-opening session.

On Thursday, the Foreign institutional investors (FIIs) net sold Indian shares worth ₹3,007.36 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹1,158.14 crore, as per provisional data available on the exchanges.

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Updated: 22 Sep 2023, 09:12 AM IST