Free Trial
OPTIONS

Expiries for Jan27 NY cut 1000ET (Source DTCC)

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

USD/INR Edging Back Towards 83.00, RBI Meeting To Discuss Missed Inflation Target

INR

USD/INR is creeping back up towards the 83.00 level. The pair was last at 82.80/850. Note October highs came in close to 83.30. The rupee has underperformed the recent rebound in the USD, with the NEER drifting lower. Still, we remain within recent ranges for this index, last near 69.50 (J.P. Morgan based).

  • In terms of even risks, there will be some focus on today's RBI meeting convened to present a letter to the government explaining why the central bank has missed its inflation target (2-6%) for 3 consecutive quarters. The contents of the letter won't be made available initially.
  • Given the RBI's bias in supporting the growth recovery, a focus point which Governor Das made yesterday, failing to meet the inflation target for the RBI shouldn't necessarily see a change in policy tact from the central bank (i.e. to a more hawkish outlook). Note the next policy meeting for rate setting is on December 7th.
  • While also coming up shortly is the services PMI, with the last outcome at 54.3. Recall early in the week the manufacturing PMI was resilient at 55.3 for October (versus 55.1 previously).
188 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

USD/INR is creeping back up towards the 83.00 level. The pair was last at 82.80/850. Note October highs came in close to 83.30. The rupee has underperformed the recent rebound in the USD, with the NEER drifting lower. Still, we remain within recent ranges for this index, last near 69.50 (J.P. Morgan based).

  • In terms of even risks, there will be some focus on today's RBI meeting convened to present a letter to the government explaining why the central bank has missed its inflation target (2-6%) for 3 consecutive quarters. The contents of the letter won't be made available initially.
  • Given the RBI's bias in supporting the growth recovery, a focus point which Governor Das made yesterday, failing to meet the inflation target for the RBI shouldn't necessarily see a change in policy tact from the central bank (i.e. to a more hawkish outlook). Note the next policy meeting for rate setting is on December 7th.
  • While also coming up shortly is the services PMI, with the last outcome at 54.3. Recall early in the week the manufacturing PMI was resilient at 55.3 for October (versus 55.1 previously).