UPDATE 2: INR at 68.00 (-3.25% - biggest single-day drop since Sept 1995
) and WTI Crude at $112.00 -- BNP Paribas Cuts India FY14 GDP Est. to 3.7% From 5.2%
) -- *INDIA RUPEE DROPS 19.2% THIS YEAR, SET FOR WORST LOSS SINCE '91
Indian Rupee has blasted through 67.00 (down 1.75% on the day against the USD) to another new all-time low - a 15% devaluation in the last 21 trading days!!!
Is it any wonder the Indian government is imposing gold capital controls? Gold in Rupees is surging back to near all-time highs...
World FX, Bond, and equity markets are a sea of red tonight as the plunge in the US markets' day-session extends into AsiaPac. Led by the Philippines (down another stunning 5.4% tonight),
equity markets in Thailand, India, and Japan are all struggling hard. Not to be outdone, bond spreads in the usual suspects of Indonesia, Thailand, India, and Taiwan are cracking wider. Most of the FX pressure is being focused tonight on Indonesia as the Rupiah collapses another 1.4% (even as the Indian Rupee opens at 66.90 - a new all-time low)
. Modest JPY weakness is providing a small lift carry-wise to US futures (Treasuries are unch, gold and silver are modestly higher from the US close) but it is the oil complex that is getting smashed higher. WTI last traded $111.59 (its highest since May 2011) and Brent just broke $117
(the latter typically more critical for US gas prices)..
Asian Equity Markets are a sea of red...
with the Nikkei 225 down 600 points from its highs on Friday... (and 97.00 JPY appears to be the line in the sand that is being defended tononight - must watch!)
and Philippines Stocks are down over 16% in the last 10 days...
As crude prices just get greener and greener...