However, the following months saw substantial inflows of around $5.8 billion, stabilizing the market for the remainder of the year.The currency market also felt the effects. Although there was some pressure on the Rupee on election result day, it appreciated by around 1.50% shortly. Whereas, the same remained nearly constant for China and Brazil.The credit default spread essentially represents the cost of insuring against the default of a borrower. However, in the short term, a selling zone seems to be formed between 83.50-83.70 and a buying zone remaining around 82.90-83.10 levels. (The author is MD CR Forex)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.

Source: Economic Times June 12, 2024 07:22 UTC