INR: RBI expected to pause rate cuts – DBS Bank

FXStreet Insights Team FXStreet

DBS Bank's Group Research discusses the upcoming Reserve Bank of India (RBI) monetary policy committee meeting scheduled for February 6, 2026. The report anticipates that the RBI will maintain its current interest rates, citing a firm growth impulse despite trade tensions and inflation that is off its lows. The Indian Rupee has faced depreciation pressures, and the RBI is expected to focus on liquidity and currency risks.

RBI monetary policy outlook

"The RBI monetary policy committee will decide on rates on 6-February. The MPC lowered rates in December 2025, along our expectations, but is expected to refrain from cutting rates further in February."

"Growth impulse has been firm despite trade tensions, while inflation is off lows. The rupee has continued to be under pressure, depreciating to successive fresh lows."

"Lowering rates further could spur further repatriation of rate-sensitive portfolio flows."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD advances as US-Iran peace deal weighs on US Dollar

EUR/USD rises after registering minor losses in the previous day, trading around 1.1610 during the Asian hours on Monday. The pair appreciates as the US Dollar declines amid easing risk aversion following the reports that the United States and Iran agree on a peace deal to end the war and reopen the Strait of Hormuz.

GBP/USD rises as market sentiment improves on US-Iran peace deal

GBP/USD gains ground after registering minor losses in the previous day, trading around 1.3450 during the Asian hours on Monday. The pair rises as the US Dollar declines amid easing risk aversion following the reports that the United States and Iran have agreed on a peace deal to end the war and reopen the Strait of Hormuz.

Gold: US-Iran peace deal bolsters recovery as eyes turn to Fed

Gold is at its highest level in four days early Monday, above $4,300, extending the bullish opening gap and the recent recovery. The bright metal kicks off a new week with a bang, having hit year-to-date lows near the $4,000 threshold last week.

Bitcoin consolidates gains, Ethereum defends support, XRP nears breakout trigger

Bitcoin, Ethereum and Ripple begin the week on a constructive note as the top three cryptocurrencies attempt to extend rebounds after recovering nearly 4%, 2% and 2.6%, respectively. BTC steadies around $65,600, ETH continues to hold firmly above the key $1,700 support, while XRP nears the upper boundary of the falling channel pattern.

BoJ set to hike, but will it save the Yen?

The Bank of Japan is poised to hike interest rates for the fifth time in this tightening cycle on Tuesday, taking the policy rate from 0.75% to 1.00%. As has become customary for BoJ rate hikes lately, the hawkish rhetoric has been intensifying in the run up to the meeting, with Governor Ueda essentially locking in the move in his last appearance on June 3.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.