The dollar index collapsed to its lowest level in a month after President elect Donald Trump described dollar as too strong. The dollar fell 1.3 percent Tuesday against a basket of major peers to its lowest level since December 7. There may be near-term weakness in the dollar index, said Khoon Goh, Head-Asia Research at ANZ Research.
Fed chair Janet Yellen also said that there is a possibility of three hikes by the US Fed in next three years. This is likely to make investors cautious, believes Seth Freeman of CEO & Chief Investment Officer of EM Capital Management.
Speaking to CNBC-TV18 Khoon Goh of ANZ Research said that he sees the dollar paring back recent gains. Markets will be choppy until the outcome of the US polls.
Safe haven currencies like the US dollar and yen will appreciate in the event of Britain deciding to leave the Eurozone, says Khoon Goh, Senior Foreign Exchange Strategist, ANZ Research.
There is a likelihood of ECB cutting deposit rates by 10 basis points and increasing quantitative easing by another 10-20 billion euros, says Hartmut Issel of UBS.
In an interview to CNBC-TV18's Ekta Batra & Anuj Singhal, Khoon Goh, Senior Fx Strategist at ANZ Research shared his reading and outlook on money market.
Khoon Goh, Senior Rates Strategist at ANZ Research says the weakness in Indian currency is purely in line with other Asian currencies. He expects Yuan to touch 6.65 by the end of the year.
The rupee on Thursday slipped 24 paise to 66.56 against the US dollar, hitting its lowest level since September 16.
The dollar weakness was on account on some weakness in the US data and some comments from Fed officials that rate hike might not come in this year, said Khoon Goh, ANZ Research.
Khoon Goh, ANZ Research, Singapore explains a large part of the currency slippage can be attributed to oil price fall. He said the rupee could not withstand the peer pressure despite being a major benficiary of lower oil prices.
The rupee depreciated 0.36 percent to touch 65 to a dollar against yesterday's closing of 64.77.
After years of lagging behind its biggest Asian neighbor, India is on track to overtake China as the world's fastest growing major economy this year. India's gross domestic product (GDP) is expected to pick up to 7.5 percent in 2015, before rising to 7.9 percent in 2016 and 8 percent in 2017, according to the World Bank.
Khoon Goh, Senior Fx Strategist, ANZ Research rules out the possibility of funds, preMSCI decision, have lifted funds off India to park them in China. Instead, he feel a lot of the sell off may be related to the fears of Fed hike in coming months.
The sentiment has turned negative on rupee but it won't depreciate very sharply, says Khoon Goh, Senior Forex Strategist, ANZ Research. He sees the rupee touching the level of 65 to a dollar by end of this year.
However, the Indian currency is expected to outperform other EM currencies despite depreciation, believes Khoon Goh of ANZ Research.