Inr To Gain Against Greenback

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Inr To Gain Against Greenback

Indian Rupee (Inr) To Gain Against Greenback In 3-Months Period

According to a forecast made by experts, there's a good chance that the Indian Rupee (INR) will strengthen against the USD.

The forecast shows the strength of the Indian Rupee (INR) in the next three months. The factor that supports such a forecast is the broader weakness seen in the USD. Additionally, the RBI will also likely tap into its FX funds to keep the Indian Rupee (INR) supported.

Inr Trades In 82.64 - 83.45 Range

So far in 2024, most of the currencies from the emerging markets have shown weakness against the USD. Yet, the Indian Rupee (INR) is trading in a tight range, starting from 82.64 and ending at 83.45. In short, the Indian Rupee (INR) has remained stable against the greenback.

It appears the stability of the Indian Rupee (INR) is mainly driven by the RBI's intervention. So, in a sense, the strength of the Indian Rupee (INR) has little to do with the Indian economy and more to do with RBI's market interventions.

It is also important to note that the RBI is actually spending its FX reserves in order to keep the currency afloat. For now, the RBI's reserves are near $642.63 billion, which is a pretty solid number.

That's why we can say that the FX intervention of the RBI keeps a cap on volatility. What's truly impressive is that RBI has also managed to build up its reserves despite spending in the FX intervention operations.

In the next 1 month, the Ruppe will likely gain and touch the 83.11 level, followed by a move down to near 82.90 in the next 3 months.

As for the upcoming RBI meeting, the consensus is that the interest rates in India will remain unchanged. The first-rate cut will likely happen in Q3 of 2024, while the Federal Reserve could introduce its rate cut in June.

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