Tuesday, August 29, 2017

INR update: NK issues resurface spoiling risk sentiments

The NK missile test which made Japan tell its citizens to take cover is rare and escalates the situation, driving gold and US 10 Y at their highest levels since Trump came into power. In the last few months of escalating tensions between US and NK this perhaps is the most compelling reason for any country to do more than talk. UN meeting today and its outcome would be carefully watched for further queues.

 

USDINR 1m NDF is 5p left which is less than yesterday’s level. KRW has depreciated 0.6% since yesterday while CNH is on an appreciation path nearing 6.60 now. Further developments in the Korean peninsula can create a risk off environment ensuring that USDINR downside will remain limited for the day. Overnight lows for USDINR was 63.72. CMP 63.96, Range 63.90-64.10.  

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