Indian Rupee: RBI stance and inflows support Rupee – BBH
Brown Brothers Harriman’s (BBH) Elias Haddad reports USD/INR is firmer after recently testing a one‑month low, following the Reserve Bank of India’s (RBI) unanimous decision to keep its policy rate at 5.25% and maintain a neutral bias.
The Indian Rupee (INR) has been strengthening against the US Dollar (USD) after recently hitting a one-month low near 94.9225, according to Brown Brothers Harriman's Elias Haddad. The Reserve Bank of India (RBI) unanimously decided to keep its policy rate at 5.25%, maintaining a neutral bias. This decision, along with active RBI intervention in the foreign exchange market and strong capital inflows since June, is viewed as positive for the INR in the coming months.
The RBI's latest projections indicate that real GDP growth will reach 6.4% in Q2 and 6.5% in Q3, while core inflation is expected to decline after peaking in Q3. India's efforts to attract overseas capital have led to nearly $41 billion in inflows since June, more than twice the country's current account deficit.
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