Free Trial

INDIA: USD/INR Contained Within Narrow Band Close to Record Highs

INDIA
  • USDINR is trading marginally higher, with the pair pinned close to its record highs. The rupee has been unable to benefit from the rally across broader Asia FX over the past week, and continues to lag its regional peers on a month-to-date basis. Indeed, it is the only major currency in Asia which has recorded spot losses versus the greenback this month. Month-end flow signals are neutral for the dollar.
  • Reuters note that seemingly persistent dollar demand from importers, lacklustre portfolio flows and the rupee's propensity to underperform when the dollar struggles are fuelling the bearish outlook. However, the RBI's repeated intervention near 83.94-83.97 has helped the rupee stay on the right side of the 84 level, they say.
  • The outlook for Indian equities is more positive, with the Nifty index trading at a fresh record high. Wider Asian equity markets are mostly lower today, with Chinese technology stocks leading the decline amid disappointing earnings, with sentiment weak across the region as investors remain cautious ahead of Nvidia's highly anticipated earnings report after markets.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.