From an age of monetary policy divergence, we have moved to monetary policy convergence. Back in summer of 2014, I started to write about how divergent monetary policies can play havoc in currency and other asset markets.
What a week it was for the Rupee bulls. Currency zoomed against the US Dollar and well past its peers to clock a gain of 2%. Since the early part of the year I have been warning that a weak US Dollar is coming.
Liquidity has returned in global financial markets. Volatility has picked up. Speculators have unwound a part of their long dollar bets ahead of the inauguration of the new US president. As a result, US Dollar has come under
Markets are in a mood for whipsaw over the month of October. Yes, we got some sharp upswings in Dollar, but barring in GBP, where I have been expecting weaker prices since Brexit, there are no trend-creating triggers till the
Rupee continues to outperform its peers, barring the one day snap decline that happened last week on account of military operation conducted by Indian armed forces against terror camps in PoK. Indian currency is an interplay
Rupee remains a market driven exchange rate, and unlike currencies which are pegged, like Chinese Yuan, it is not easy to devalue or appreciate a currency as per the whims and fancies of the policymakers.
Volatility is back and it is back with a bang. After an extremely quiet August, where Rupee traded within a very tight range against US Dollar, we are seeing a good bit of two way movement in the pair.
Summer lull continues in financial markets. August is turning out to be a quietest month on record, with realised volatility across asset classes and EM currencies falling to multi-year and even multi-decade lows.
Appointment of Dr. Urjit Patel as the Governor of the Reserve Bank of India (RBI) today indicates continuity. Dr Patel has worked closely with Dr Raghuram Rajan and many of the changes that have occurred in monetary policy fr