Monday, July 24, 2017

INR update: Dollar weakness continues as Russia investigations widen

Till the time stocks markets trade firm we cannot say that any of the investigations into Kushner or Trump junior is creating a risk off. At most these events are removing the last remaining chances of Trump affecting a fiscal bill to spur the economy which is resulting in US yields registering small downticks and the consequent dollar weakness. This is an eventful week with FOMC statement and important data release everyday including the direction setter US GDP on Friday.

 

KRW and CNH have appreciated since Friday while some of the other global EM currencies are in the negative. USDINR 1m NDF is trading 5.5p left which indicates offshore selling. Debt inflows seem to have increased in corporate bonds in the last 1 week as government bond limits near the brink. There was chatter of a couple of ECB disbursements which should keep USDINR well offered during the week complimented by dollar weakness. CMP 64.43, Range 64.49-64.33.

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