- Japan – Yen appreciated substantially in mid June as investors feared BoJ will not be able to deliver bold monetary steps as promised. Soon after a steep YEN appreciation, dollar showed some strength on the back of easing geopolitical tensions.
- Indonesia – Indonesia has been in news for its surprising rate hikes to counter fund outflows. Even after subsequent rate hikes and stern steps to contain CAD (Similar to our level) rupiah still continues to remain weak primarily on the back of Central bank’s interference in reporting numbers i.e. they were seen deliberately publishing overvalued number.
- Brazil – Sentiments reversed for Brazilian real when its central bank announced intervention programme worth some $60bn in conjunction with rate hikes. Central bank intervened heavily in derivatives market by supplying dollars.
- India – It was the announcement of FCNR (B) swap window which helped rupee prop up substantially. Dollar swap window for Oil marketing companies was also among the important stabilization step. Steps on export promotion from New delhi will contain speculative dollar demand.
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