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Rupee Extends Gains In Wake Of Reports Of RBI Intervention

INR

Spot USD/INR maintains light bearish bias this morning, extending its pullback from an all-time high of INR77.53 printed on Monday. The rate last deals at INR77.24, with bears looking for a sell-off past Mar 7 high of INR76.98, followed by May 5 low of INR76.00.

  • USD/INR 1-month NDF last seen at INR77.48, already past March highs, which turns bearish focus to May 5 low of INR76.18. Topside focus falls on May 9 high of INR77.84.
  • Reminder that a source told Bloomberg on Monday that India's central bank was intervening in all FX markets and intended to continue to do so.
  • India will report monthly CPI data on Thursday. Inflation is expected to have quickened to +7.42% Y/Y in April from +6.95% recorded in March.
  • Industrial output figures are also due Thursday. Analysts expect the growth in manufacturing production to have slowed to +1.1% Y/Y in March from +1.7% registered in February.

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