USDINR
On Monday, USDINR likely to commence between 82.55 – 82.65 as UBS sealed a deal to buy rival Swiss bank Credit Suisse in an effort to avoid further market-shaking turmoil in global banking, Swiss authorities said on Sunday.
Prime Minister Narendra Modi said “India's economic and banking system are strong even amid the turmoil currently rocking global markets”.
USDINR TECHNICAL
Day Trend: - BUY ON DIP
Weekly Trend: - HOLD
INTRADAY RANGE – 82.80 (82.65 – 82.49) 82.34
THE CREDIT SUISSE DEAL
UBS said it will buy Credit Suisse for 3 billion francs ($3.2 billion) and assume up to $5.4 billion in losses, in a shotgun merger engineered by Swiss authorities.
THE DOLLAR ACTION
Japanese yen cross-currency swaps, a measure of non-U.S. investor demand for dollars, shrinking to minus 35 basis points or half their levels last week, in another sign of respite in market funding conditions.
Europe are examining scenarios of contagion in the region's banking sector and are looking to the Fed and the ECB for stronger signals of support, two senior executives close to the discussions told Reuters.
Interest rate futures pricing imply about a 60% chance that the Fed hikes rates at its meeting later in the week, but has also priced in several rate cuts by the end of the year.
THE ASIAN MARKET
On Monday, Asian stocks steadied and U.S futures rose in relief at a weekend rescue deal for Credit Suisse and a concerted effort from central banks to shore up the mood, though trade was tense and volatile as contagion fears stalked financial shares.
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