USD/INR
USD/INR: Narrow Range Trading with Potential Breakout
Aa
Share
ING Economics
INGs global economists and strategists tell you whats happening and is likely to happen in the world of global markets.
Our analysis and forecasts will help you respond and stay a step ahead in the world of macroeconomics, central banks, FX, commodities and everything else in between. Visit ING.com.
Follow ING Economics on social media:
The INR is currently trading towards the top of the very narrow band in which it has been in since October last year, though we could be approaching a break-out as the range narrows.
Supporting the INR, the real Reserve Bank of India policy rate is high, thanks to some much better inflation outcomes in recent months. While the RBI refrains from easing, that support will endure.
The biggest risk is that with most of the inflation drop coming from supply-side improvements, it would only take unfavourable weather or a similar factor to push those inflation figures wider, resulting in an offsetting nominal depreciation.