RBI Intervenes But Will It Just Provide Better Levels To Sell INR?
USD/INR opened 72.25 level and looked poised to fold like a lawn chair as RBI policy uncertainty could continue to take its toll on the Rupee as the markets hedge for a possible regime change at the India central bank. In defence of the of the Rupee, the RBI is thought to have intervened today at the 72.35 level. But there are growing concerns that fissures between RBI and the government policy ambitions will widen and possibly come to a loggerhead.
In this regard, I would expect the RBI intervention moves to offer up little more than a better level to sell the Rupee
It was a hectic morning on the CNH policy front on the back on the back of Vice Premier Liu He telephone conference with US Secretary of the Treasury Mnuchin and USTR’s Lighthizer on Tuesday morning. While concurrently talks about additional stimulus in China are rampantly circulating amongst SG and HK trading desks.
But all this noise has done little to tame equity market sentiment as the HSI has taken on a decidedly bearish tone into the midday break.
But the CNH sentiment has improved substantially this morning, suggesting that within these bellwether reports, the markets are interpreting a stable Yuan remains at the forefront of Pboc policy discussions.
The Malaysian Ringgit continues to struggle dearly today, on the back of sluggish oil prices and equity market outflows as investors remain in de-risk mode.
AS we make the turn for the European open DAX futures are trading off session highs as EU investors are buckling in for another day of Brexit ping pong.