USD/INR: Strong growth backdrop and stable interest rates are helping to stabilize the Rupee – Commerzbank
|USD/INR is back to the lower end of the 82.70-83.50 range since the start of the year. Economists at Commerzbank analyze the pair’s outlook.
Continued strong growth momentum
The latest S&P Global preliminary PMI reports for both manufacturing and services continue to point to strong economic momentum. The manufacturing PMI for February edged up to 56.7 from 56.5 in January. The services PMI was also slightly higher at 62 from 61.8 previously. They are both well above the 50 threshold, particularly services.
Looking at the forward-looking indicators such as new orders, there were also few signs of a slowdown anytime soon.
For the Reserve Bank of India (RBI), all this is welcome news. The economy remains on a strong footing and headline inflation is expected to remain below the upper end of the 2-6% target range. The strong growth backdrop and stable interest rates are also helping to stabilize INR.
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.