Onshore INR markets had a relatively..........>

INDIA: Onshore INR markets had a relatively sanguine session and were broadly

rangebound, however offshore NDFs went bid on headlines from the Reserve Bank of

India, stating they are to seize Yes Bank, imposing withdrawal curbs and

implementing a rescue plan after the company came under considerable pressure

after the squeeze on India's shadow banking sector. A consortium of banks

including SBI is to inject new capital into the company.

- USD/INR will likely open higher on the news in Friday's session, keeping the

week's highs at 73.64 under pressure. This level also marks 2 year highs for the

pair, with 74.4825 the longer-term target.

- Options markets remain heavily skewed toward INR downside, although some

options traders have been hedging for a INR recovery via USD/INR put spreads,

with 73.50 and 72.75 strikes a particular focus.

- Indian CPI, trade balance and industrial production data takes focus from

here, with CPI and IP due on the 12th March.