USD/INR: Rupee to recover gradually amid improving balance of payments – HSBC
The December Reverse Bank of India (RBI) meeting proved to be a let-down for the Indian rupee. However, economists at HSBC expect the INR to recover gradually over time amid improving balance of payments.
The December RBI meeting somewhat disappointed INR
“The INR was slightly weaker following the RBI’s decision to keep its policy rates unchanged against some expectations of a 20bp hike in the reverse repo rate.”
“The RBI held on to its accommodative stance for ‘as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy’. Yet, this need not hold back the INR from gradually recovering over time, amid supportive trends from India’s balance of payments.”
Reprinted from FXStreet_id,the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.