Dollar index is showing signs of weakness making me accept the view that over the medium term we might witness USD weakness with EURUSD heading towards 1.15 levels. USDJPY is more tricky, given its correlation with risk assets (I expect risk assets to do well in 2017 globally) while on the other hand US would not accept further weakening in Yen. On the other hand GBPUSD seems a bit toppish as the positives seems to have been built into pricing. UK CPI would be the main data to watch today in an otherwise quiet market.
USDINR 1m NDF is trading 8.5p left as compared to 4.5p yesterday indicating increasing offers. Debt inflows yesterday were more than INR 20 bn again. The theme to buy INR for its carry seems to be building globally now, as markets gradually change their view from, INR appreciation might be overdone to flow dependent moves from here on. Since morning we have witnessed Nationalized banks on bids along with precious metal importers buying. CNH is trading below 6.89 again while equities in Asia are flat. CMP 64.10, Range 64.15 -63.95.
Wht yr view - were do I see INR moving from this point
ReplyDeleteYou mean the year view?
DeleteI would think USDINR is headed lower. For the Financial year we can see USDINR headed towards 62 or lower levels while a risk off sentiment can take USDINR towards 65.25 max.