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INR: USD/INR Posts Fresh Record High, Narrows Gap to 84.00

INR

The rebound in the dollar has prompted further weakness for Asia FX, with most regional currencies weaker overnight. Gains for USD/INR stand at 0.14%, taking the pair to a fresh record high near the 84.00 handle. That brings gains since the start of July to 0.67%, almost double that of the first 6 months of the year.

  • According to Reuters, dollar demand in the non-deliverable forward market and a slight trimming of Fed rate cut expectations facilitated the rupee’s decline, noting that further RBI intervention is likely.
  • Looking ahead, the RBI rate decision takes focus on Thursday. No change to either rates or the “withdrawal of accommodation” stance are expected, with interviews with the RBI Governor since the last meeting revealing a cautious view regarding the return of inflation to target.

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