Surge in bond yields & their adverse impact on Asian currency baskets

When the Federal Reserve eventually decides to taper monetary policy, major Asian currency crosses like Yen, SGD, CNY are tendering to shift their trends.

Christine Lagarde has made a strong pitch to the US Fed to postpone the rate hike.

However, if the offset is going to be happening that is stepping away from quantitative easing (QE) such as the Fed is expected to do, but the knock on implications for me is what makes me a bit concerned about certain currencies like the Indian rupee or other currencies in Asia as well.

As the bond volatility would pick up globally, a safe haven for currency across the board; and when the US dollar would be doing well, the Japanese yen and peripheral currencies like the Indian rupee and all would be under pressure to depreciate.

Currency Strategies:

The USD/INR pair can rebound towards 64.16/64.26 levels again if prices hold on to 63.85 levels on dips.

Any close bse above 64.30 may test price move towards 65 levels.

Add Longs 1Y USD/INR straddles strike at 63.7360 levels, 100:75 notional ratio (100:150 vega) 0.3 vol.