KUALA LUMPUR: Sell the Indian rupee and Philippine peso. Buy the Malaysian ringgit and Singapore dollar. A sustained rally in oil prices will only push them further along this path• Main oil import countries and to a lesser degree, the current-account deficit countries, will come back into the radar, e.g. INR and IDR. However, the twin deficits for these two countries are less versus the taper tantrum of 2013 and should be less vulnerableCommonwealth Bank of Australia (Andy Ji, Singapore-based currency strategist)• We have initiated a short INR/IDR 1-month NDF position on firmer global oil prices• Firmer global prices are likely to narrow Indonesia’s current-account deficit in coming quarters• Contraction in India’s deficit, following the improvement on the back of more stringent regulations over gold and oil imports, has stalled on robust domestic demand for imports - Bloomberg

Source: The Star November 15, 2017 04:30 UTC