USD/INR Softer In Early Trade, Wholesale Prices Moderate, Trade Balance On Tap

USD/INR is softer this morning, down ~0.2% printing at 82.30/35.

• The pair sits a touch above the 20-Day EMA (82.34), and remains in the relatively narrow range seen since the RBI intervened last month as the pair approached the 83 handle.
• Equity inflows from foreign investors continue, the total for March now sits at an inflow of $2.355bn putting March on track for the largest inflows since May 2020.
• February Wholesale Prices printed at 3.85%, below the expected 4.00% moderating from 4.73% seen in January. This was the lowest print since Q1 2021. The decline in wholesale prices isn't leading to a meaningful pull back in CPI pressures though, so this is unlikely to shift RBI thinking ahead of the April policy meeting.
• The trade balance for February is on the wires today, the Bloomberg survey shows a deficit of $19.2bn is expected, slightly wider than the $17.75bn deficit seen in January.