Gym hygiene guide: the dangerous bacteria that lurk in dirty fitness equipment and clothes 
The Federal Reserve held off hiking interest rates 
The Federal Reserve and the art of navigating a soft landing ... when economic data sends mixed signals 
Will global oil supply be at risk if Iran and Israel pull the Middle East into war? 
After Iran’s attack on Israel, is a devastating regional war next? 
Why the Bank of England is now more upbeat than the IMF 
In a time of information overload, enigmatic philosopher Byung-Chul Han seeks the re-enchantment of the world 
As treasurer, Bill Hayden set Labor on the path to economic rationalism 
What if whales took us to court? A move to grant them legal personhood would include the right to sue 
Bank of England interest rate rise: why this could be the last increase for a while 
If central banks don't start cutting them soon, it could actually increase inflation 
‘They don’t have enough’ – schools in England are running food banks for families 
Interest rates: Monetary policy is always political as central banks opt to back the financial sector 
Why doesn’t my digital music feel like ‘mine’? Three ways digital possessions reduce our sense of ownership 
The USDINR had recouped all the lost incurred since the Q4 demonetization phase, the drop in the spot over the past two days cleared the 66.0 level in a decisive way not witnessed since 2015, and caused an uptick in front-end vols (refer above charts).
With dealer activity unlikely to account for large price movements in our opinion, ex-post explanations for the move always involve considerations of looser RBI reserve accumulation, Modi’s blockbuster legislative election win and prospects for further structural reforms, support from the drop in Oil prices and real money flows.
Most of the Asian FX strategists hold a neutral view on the currency and have suggested that chasing moves lower in USDINR doesn’t present great risk/reward perspectives. The dynamic of portfolio inflows into the fastest growing major economy, contained by RBI intervention, is likely to remain in effect, especially since India has been left out of the trade tension narrative pushed by President Trump.
Note that RBI actions lead to India ranking third in terms of the size of FX intervention behind Switzerland and Taiwan, but the pace of intervention is far below the 2% GDP threshold that raises eyebrows in the Trump camp.
Over the past few years, USDINR has been the pair where short gamma strategies have delivered their highest Sharpe ratios, along with EURUSD and USDSGD (refer above charts).
Unlike in EURUSD however, overlaying a long vega leg, resulting in vega-neutral positions, has improved risk/rewards significantly and led to an appreciable alpha generation strategy.
