US data continues to show robust growth while the tax bill goes on vote today/tomorrow which is preventing further dollar weakness for the time being. Once the bill is behind us I think markets will start looking at the future, i.e., of a higher fiscal deficit US where the administration itself wants a weaker dollar. Today we have the Euro zone inflation which would be important.
USDINR 1m NDF is trading flat to slightly left while EM currencies have depreciated moderately since yesterday. KRW has lost significantly to 1188 from 1174 yesterday on the back of dovish comments from BOK post the rate hike. Asian equities are in the red as Chinese shares continue to inch lower everyday because of regulatory crackdown on speculative activities locally. Although Chinese risk off sentiments for now are confined to their local markets. Since yesterday INR has registered a 20p move up which should be enough given the global changes. CMP 64.51, Range 64.57 – 64.35.
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