According to the India Economists at Bank of America Merrill Lynch (BAML), the Reserve Bank of India (RBI) is seen cutting the benchmark policy rates by 25 basis points in February, despite inflation seen at 6.70% in December.
“After all, the 'busy' industrial season will end by March. The MoF should also try to support demand in the February 1 Budget by running a higher fiscal deficit of 3.8%.
We continue to highlight that rising real lending rates are hurting growth. While nominal MCLR has fallen 43bp, on RBI easing, real MCLR has gone up 120bp on falling core WPI inflation.”
Amid rising odds of an RBI rate cut next month, the Indian rupee loses ground to now trade near 70.90 vs. the US dollar, at the time of writing.
The USD/INR cross hit fresh monthly lows of 70.768 earlier today, as the US dollar remained on the back foot across the board, in the wake of weaker US payrolls data released last Friday.
USD/INR Technical levels to consider:
|Today last price||70.9125|
|Today Daily Change||-0.0285|
|Today Daily Change %||-0.04|
|Today daily open||70.956|
|Previous Daily High||71.4025|
|Previous Daily Low||70.8485|
|Previous Weekly High||72.57|
|Previous Weekly Low||70.8485|
|Previous Monthly High||71.98|
|Previous Monthly Low||70.328|
|Daily Fibonacci 38.2%||71.0601|
|Daily Fibonacci 61.8%||71.1909|
|Daily Pivot Point S1||70.7355|
|Daily Pivot Point S2||70.515|
|Daily Pivot Point S3||70.1815|
|Daily Pivot Point R1||71.2895|
|Daily Pivot Point R2||71.623|
|Daily Pivot Point R3||71.8435|
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.