USD/INR: Stay neutral amid uncertainty around the state elections – Westpac

Frances Cheung, Head of Macro Strategy Asia at Westpac offers her view on trading the USD/INR cross heading into the outcome of the state elections due tomorrow.

Key Quotes:

“This trade (buy 1M USD/INR NDF outright) was initiated at 70.20 on 03 December 2018 primarily in view of the risk of oil production cut. As this event is out of the way, we took profit from the position at 71.50, ahead of target.

The gain was 1.78% including mild negative carry.  

We prefer to stay neutral amid the uncertainty around the state elections results on 11 December 2018.”