USD/INR: RBI far-fetched to cut rates in front of the Fed, supporting the Rupee – Commerzbank

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USD/INR keeps on holding around the 83.00 level and inside the 82.50-83.50 scope of the beyond four months. After the most recent data on India’s inflation, economists at Commerzbank look at the outlook for the pair.

Welcome improvement on expansion

January title expansion facilitated to a three-month low of 5.1% YoY Center expansion, which prohibits food and energy, directed further to 3.6% from 3.9% beforehand. This is empowering as it recommends RBI’s tight arrangement position is assisting with holding inflationary tensions in line in spite of areas of strength for the scenery.

RBI has expressed that it wants to see expansion return towards 4%, the mid-point of the 2-6% objective. As a result, the RBI is likely to remain hawkish in the short term. We don’t conceive them cutting rates in front of the Fed. This thusly ought to likewise assist with supporting INR.

 

About the author

Nafees Saifi // entrepreneur, author, trainer, and stocks and FX trader. 
Nafees Saifi is a professional FX trader from, India. Nafees has extensive experience trading commodities, bonds, and equity futures in the Asian, European, and US markets. Nafees holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.

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