Indian Rupee Price News and Forecast: USD/INR ignores Indian worries, registers four-day drop to monthly low under 71.00
|India: CPI likely increased by 6.6% in December
In view of analysts at TD Securities, India’s CPI likely increased by 6.6% YoY in Dec, an acceleration from 5.5% YoY recorded in the previous month.
Key Quotes: “The main culprit is likely to have been food inflation, which likely recorded a double digit increase, even as core inflation remains well behaved, helped by favourable base effects.”
“Although CPI will likely breach the upper end of the RBI's 2-6% band we expect this to prove temporary as the food supply disruptions should fade in the months ahead. We don't expect this to stand in the way of further RBI easing.”
USD/INR ignores Indian worries, registers four-day drop to monthly low under 71.00
USD/INR declines to 70.85, after refreshing the monthly lows to 70.68, as the Indian markets open for Monday’s trading session.
The pair might have cheerer upbeat Indian Industrial Production numbers, published Friday while the US-China trade optimism also favors the Indian rupee (INR) buyers. India’s Index of Industrial Production rose for the first time in three months to 1.8% MoM against a contraction of 3.8 percent in October. The US and Chinese leaders will sign on a phase-one trade deal on January 15 in Washington. The leaders are also expected to start discussing phase-two deal talks as well as re-start the semi-annual talks including broad eco-political issues.
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