- Analytics
- News and Tools
- Market News
- USD/INR: Patient and cautious monetary policy stance from the RBI to support the Indian Rupee – Wells Fargo
USD/INR: Patient and cautious monetary policy stance from the RBI to support the Indian Rupee – Wells Fargo
The Reserve Bank of India (RBI) is set to maintain a cautious stance on monetary policy. In the view of economists at Wells Fargo, delayed easing should support the Indian Rupee (INR) over time.
Local politics should be a source of strength for the INR
A patient and cautious monetary policy stance from the RBI should be supportive of the Indian Rupee over time. The Federal Reserve is likely to cut policy rates before the RBI, which should support the Rupee through more attractive interest rate differentials.
Our view for a Modi victory with a Lok Sabha majority should allow for broad-based policy continuity and further pursuit of reforms aimed at integrating India into the global economy and India's financial markets into the global financial system. Policy continuity should attract equity and debt inflows into India, and be supportive of the Rupee.
Finally, economic outperformance, fiscal responsibility and debt consolidation, and easing political risk should offer a rationale for credit rating agencies to upgrade India's sovereign credit rating.
We see opportunity for the Rupee to strengthen over the longer term. As far as our long-term outlook, we believe the USD/INR exchange rate can strengthen to 82.00 by the end of 2024 and believe the foundation for Rupee strength to persist into 2025. By the middle of next year, we believe the USD/INR can move toward 81.00.
© 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.
Bank transfers
