Having gapped higher at the open on a.........>

INDIA: Having gapped higher at the open on a further consolidation in the oil

price, spot INR finished relatively strongly, but well within recent ranges vs.

the USD. INR moved in tandem with the Indian sovereign curve, as yields fell

across the curve. Markets seemingly remain happy holding the price between the

71.00 and 72.00 mark, with the Fed decision later today likely to provide the

next signals. In offshore trading, INR has extended the move, with 1m outright

NDFs sinking closer to Friday's lows to close the week's opening gap. Similarly

in options markets, risk reversals moved in favour of INR call vols, although

the contracts remain rangebound pre-FOMC.

-Although broader options volumes were thin across much of EM and DMFX

Wednesday, USD/INR options activity held up well, with put options

unsurprisingly in focus following the move in spot. Put strikes at 70.50, 71.00

and 71.50 proved popular, with close to $2 trading put notional for every $1 in

calls.

-The Indian economic calendar is clear this week, keeping focus on the stability

(or lack thereof) of Middle-eastern oil supply.