Mitul Kotecha, senior emerging markets strategist at TD Securities, points out that the tensions between India and Pakistan have ratcheted to their highest since the 1971 war. Key Quotes “PM Modi faces elections in May, and after state election losses last year, look tougher for his party. He could benefit if he is perceived to be taking a tough stance.” “Ultimately international pressure could help to de-escalate tensions. The conflict comes at a bad time for Indian assets amid foreign portfolio outflows. Given the need to finance India’s current account deficit, this has pressured the INR.” “During past friction between the two countries INR generally weakens while FX volatility rises. We think the RBI has plenty of ammunition to cap a rise in volatility.” “We think the underperformance of Indian assets will not last, capital inflows will eventually resume and the INR will rally into Q2, reversing its underperformance.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/JPY Technical Analysis: The cross appears consolidative around 126.00. Dips face support in the 125.60/25 band FX Street 4 years Mitul Kotecha, senior emerging markets strategist at TD Securities, points out that the tensions between India and Pakistan have ratcheted to their highest since the 1971 war. Key Quotes "PM Modi faces elections in May, and after state election losses last year, look tougher for his party. He could benefit if he is perceived to be taking a tough stance." "Ultimately international pressure could help to de-escalate tensions. The conflict comes at a bad time for Indian assets amid foreign portfolio outflows. Given the need to finance India's current account deficit, this has pressured the INR." "During past friction between… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
