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Rupee Underperforming Broader USD Weakness

INR

Spot USD/INR has pushed to fresh record highs in the first few hours of onshore trading today. We ran up to 77.80 before sentiment stabilized, we are around 0.30% higher in spot USD/INR terms vs. last Friday (note spot markets were closed yesterday).

  • The rupee is underperforming the broader rally seen in Asian FX today. All other regional currencies are higher against the USD (except for IDR), with KRW (+0.62%) and THB (+0.36%) the standouts. The USD is generally weaker against the G10 currencies as well.
  • Higher energy and agricultural prices have not helped the INR's cause, particularly with oil back close to multi-week highs.
  • Later today we get wholesale prices data. The market looks for a +14.92% YoY print, versus +14.55% YoY previously. Recall last week that CPI surprised on the upside. Looking ahead, tomorrow delivers the minutes from the RBI's most recent monetary policy gathering.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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