The Fed decision to trim rates had little.....>

INDIA: The Fed decision to trim rates had little impact on the INR Thursday,

with USD/INR trading well within recent ranges. The pair continues to trade

horizontally, with traders still eyeing trade talk progress (or lack thereof)

between the US and China and any further volatility in the oil price, which

remains higher by over 7% from the Friday close.

-The move in oil continues to underpin the USD/INR vol term structure, with the

front end remaining elevated as market eyes the October 4th RBI rate decision.

The RBI governor spoke Thursday, declining to provide details on Indian GDP

growth and talking down the ability of monetary policy to strike "multiple

targets". The comments overall provided little new information, keeping NDF

outrights relatively stable.

-USD/INR support holds at the Sep13 low of 70.8638, with resistance lying at the

71.8178 mark - the 61.8% Fib for the 72.4075-70.8638 move. There's been

relatively little interest in the USD/INR options market Thursday, with total

volumes well below average for this time of day.