Indian Rupee Price News and Forecast: USD/INR drops to fresh monthly low amid upbeat China inflation
|USD/INR: RBI may be done with interest rate cuts, swaps markets show
The Reserve Bank of India (RBI) may be done with interest rate cuts, swaps markets indicate, having reduced borrowing costs by 135 basis points in February to October period.
One-year interest-rate swaps surged 27 basis points to a four-month high of 5.29% on Dec. 6, following the central bank's status quo rate decision. Swaps essentially priced out the 25-40 basis points of reductions factored in before the rate decision.
USD/INR drops to fresh monthly low amid upbeat China inflation, softer greenback
USD/INR declines to 70.9150 amid the initial Indian trading session on Tuesday. The pair recently benefited from upbeat China data and calls of no more rate cuts from the Reserve Bank of India (RBI).
With the Asian leader China registering upbeat inflation data, markets in the region seem to benefit. However, fears of the trade war between the United States (US) and China keep the optimists under check.
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