The SNB's 25 basis point rate cut on Thursday proved a shot in the arm for global risk sentiment as markets raced ahead to bet on big central banks lowering borrowing costs this year, sending Wall Street closing at record highs.
Britain and Sweden, too, will likely lift interest rates again, while Switzerland may be getting ready to join the rate-hike club. In contrast, the Bank of Japan should confirm it’s ultra-dovish stance remains solid.
India was placed at 75th position in 2015 and at 61st in the year before that, though it used to be among top-50 countries in terms of holdings in Swiss banks till 2007. The country was ranked highest at 37th place in the year 2004.
Over the weekend, Switzerland's voters overwhelmingly rejected a proposal to require the country's central bank, Swiss National Bank (SNB), to raise its gold holdings to 20 percent of its assets from around 7 percent currently as well as preventing it from selling any more of its gold holdings.
Indians' money in Swiss banks has fallen to a record low level of about Rs 9,000 crore (1.42 billion Swiss francs), as a global clampdown against the famed secrecy wall of Switzerland banking system made it unattractive for their global clients.
Mecklai graph of the day - The Federal Reserve hinting at QE3 and pledging to keep rates on hold at least until late-2014, Dollar has lost the appeal against its G7 basket.
Mecklai Graph of the Day - will SNB defend EURCHF -1.20
The Swiss Franc has continued to trade with a softer bias against its 2 major traded counterparts – the Dollar & Euro, ever since the SNB intervened in the Forex markets back during early September by setting a floor cap on EURCHF at 1.20 levels.
Senior currency strategist at BNP Paribas Chin Loo says she sees the rupee above 44-46.25 to the dollar with support coming in above 45.60
Nick Verdi, Currency Strategist - Asia at Barclays Capital is bullish on the INR appreciating over the next couple of weeks.