Forex and Debt Market Update – June 2024

• FPIs turned net equity buyers in June after two months of selling.
• Net FPI inflows in debt increased ahead of India’s inclusion in JP Morgan bond index on June 28.
• The bond index inclusion is expected to attract ~USD 2 bn worth of inflows per month up to March 2025.
• Expected FPI inflows should support INR while RBI intervention should limit any significant appreciation.
• USD/INR likely to trade between 83-83.70 in the near term.
• India 10Y yield is likely to trade between 6.90-7.05% in the near term aided by FPI inflows.

Forex_and_Debt_Market_Update_-_June_2024