Sept. 6 (Bloomberg) -- Benoit Anne, head of emerging markets strategy at Societe Generale SA in London, comments on the impact of the European Central Bank’s debt-buying plan on risky assets globally.
ECB President Mario Draghi said today policy makers agreed to an unlimited bond-purchase program to regain control of interest rates in the euro area and fight speculation of a currency breakup.
Anne gave his comments in an e-mailed response to questions.
“It is overall positive. No disappointment there, but of course not the final story given the big market events following up such as non-farm payrolls tomorrow and FOMC next week,” he wrote, referring to U.S. jobs data and the Federal Open Market Committee meeting on Sept. 12 and 13.
“I expect a short risk rally tomorrow, as from a risk management perspective the next hurdle has to be handled carefully too,” which is the jobs data.
“The Indian rupee is highly sensitive to the global risk picture, so it is positive for now, but the domestic fundamentals are still not helping. I wouldn’t expect a strong rupee rally at this point.”
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