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Rupee Gains After Release Of Above-Forecast Inflation Data

INR

Spot USD/INR has weakened as onshore markets re-opened, following the release of better than expected inflation data out of India.

  • Consumer prices rose 7.79% Y/Y in April, beating consensus forecast of +7.42% and printing above the upper end of the forecast range. Headline inflation reached the fastest pace since 2014 as fuel and food costs soar, remaining above the RBI's +2.0%-6.0% target for the fourth consecutive month.
  • USD/INR trades at INR77.32, down 11 pips on the day. The rate is moving away from an all-time peak printed at INR77.63 on Thursday. Further losses towards the 50-DMA at INR76.32 would please bears, while bulls look for another leap to historic highs.

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