USD/INR broke out of its tightly held range to move back above 75, in line with higher energy prices. As economists at Société Générale note, higher oil prices is the key near-term risk for USD/INR.
“The recent surge in oil prices has been detrimental to the INR, and as such the currency should remain under pressure until the supply-related bottlenecks causing the energy crisis abate.”
The trade deficit widened to a record high in September amid surging commodity prices, exacerbating the INR’s recent weakness.”
The RBI recently stopped its bond purchasing programme (GSAP), a clear indication of policy normalisation, and as such we believe that monetary policy should be supportive of the INR in the medium-term, especially with the RBI poised to deliver a rate hike by 2Q22.”
“Foreigners remain net buyers of Indian equities, while they turned net sellers of Indian bonds in October following a couple of months of strong inflows. As such, portfolio flows, despite losing some momentum this month, remain supportive of the currency.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.