Indian rupee soft amid contagion
|USD/INR hit its historic high: currently at 69.83, it is expected to trade sideways near the 70 psychological resistance level. The Reserve Bank of India (RBI) decision to raise its Repo Rate for a second consecutive time on 1 August appears to have paid off. The decision was taken amid strong economic growth (GDP 7.40% for 2018) and increasing inflation numbers that are strongly driven by oil price volatility and INR weakness. Headline inflation in July remains at 4.17%, a slowdown from May’s 5%.
As the Turkish lira is spooking emerging market currencies, the RBI will remain attentive and safeguard economic welfare by raising rates at its 4 October meeting. Additionally, core inflation in July remains at 6.29% (prior: 6.29%), too high for the RBI’s liking.
Stay on top of the markets with Swissquote’s News & Analysis
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.