11/22/2023 0 Comments All currency indian rupees![]() As such, intervention is used only to maintain low volatility in exchange rates. The INR is a managed float, allowing the market to determine the exchange rate. The 1-year USD/INR implied yield is currently at 2.16%.The central bank in India is called the Reserve Bank of India. rate view, he said, adding that the Fed could raise rates to near 5.50% this year while the Reserve Bank of India takes it to 6.75%. Premiums are a "receive on uptick" primarily based on the U.S. It has been a "welcome change" that the rupee has managed to appreciate, but the "broad theme" still is that the local unit is tied to the dollar index and USD/INR remains a buy on dips, Agarwal added. ![]() The dollar index has managed to recover to 104.50 from near 101 on the back of this repricing. Investors are now looking at a peak rate of just under 5.50% and have almost priced out rate cuts this year. The expectations around the peak Fed Fund Rate have changed since the January U.S. The rupee might be better placed due to the Reserve Bank of India's vast forex reserves, "still it is an emerging market currency," and will have "a battle to fight in the current U.S. "Given the kind of monetary landscape that's evolving globally, I don't see the dark clouds lifting anytime soon over emerging market currencies in general," Agarwal said The local unit's resilience will face "a stiff test from a volatile macro environment," ANZ's Nitin Agarwal said in an interview with Reuters. It has managed a near 1% rally over two sessions and it has held up well to the ongoing reassessment of the Fed's rate view. The rupee on Monday hit 81.6350 to the dollar, its highest level in more than a month. dollar may be stifled by the headwinds posed by the Federal Reserve's monetary policy on emerging market currencies, the India head of trading at ANZ said on Monday. MUMBAI, March 6 (Reuters) - The Indian rupee's recovery against the U.S.
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