Advertisement
Advertisement
Advertisement
24option
BREAKING NEWS : $500 - $5000 No Deposit Bonus Hurry up, Join Now!
Written by experienced traders and professional market analysts, our Forex technical analysis is just what you need to get an edge in your Forex trading
Advertisement InstaForex

USD/INR: Indian rupee to face downward pressure again towards year-end – MUFG

Written by By Matías Salord | 2019-12-02 20:14:06 GMT

Analysts at MUFG Bank expect the USD/INR pair to trade at 71.00 during the current quarter, at 71.50 over the first quarter of next year and at 72.50 by the third quarter of 2020. 

Key Quotes:

“The Indian rupee was the worst performing Asia ex-Japan (AXJ) currency for the second consecutive month in November. Most of the rupee’s losses were recorded during the first half of November, driven by narrowing real yields, and risk aversion due to US-China trade deal pessimism, sluggish India data releases, and Moody’s decision to downgrade India’s sovereign debt rating outlook to “negative” from “stable” with the rating kept at Baa2 on 7th November. Rupee weakness came amid a 1.7% m/m increase in the foreign reserves to a fresh record high of USD448.3bn as at 15th November. The acceleration in headline CPI to 4.62% y/y in October drove real yields lower to 0.5%, which is the lowest since July 2016 and possibly below the RBI’s comfortable threshold range for keeping a stable rupee. This partly explains the net sell-off in Indian government bonds in November versus a net inflow in October.”

“The rupee’s slight recovery during the second half of November was mostly driven by merger and acquisition flows, which is one of the reasons why India is one of the only two AXJ countries other than Taiwan to record a net inflow into equities in November. With such flows likely to be one-off, the rupee will face downward pressure again towards year-end as global and domestic risk sentiments remain weak and India’s real yield fall further in view of another 25bps cut to the benchmark repo rate by the RBI at the next meeting on 5th December.”

Author

By Matías Salord
hotforex

Start Trading With Top Industry Brokers

Broker Profile Open Account
Capital Index
  • Minimum Deposit: 50 USD
  • Leverage of up to 1:500
  • Broker Type : STP
  • Regulation : FCA (UK), ASIC, SCB
  • HotForex
    XM
  • Minimum Deposit: 5 USD
  • Leverage of up to 1:30
  • Leverage applies to all EU regulated entities of the group. Leverage depends on the financial instrument traded.
  • Broker Type : Market Maker
  • Regulation : CySEC,ASIC ,FCA
  • XM
    Tickmill
  • Offer: 30USD No Deposit Bonus
  • Minimum Deposit: 25 USD
  • Leverage of up to 1:500
  • Broker Type : ECN/STP & STP
  • Regulation : FSA SD008
  • Tickmill

    The Best Crypto to Crypto

    Exchanger Advantages Open Account
    binance
  • Safety Stability: Multi-tier & multi-cluster system architecture
  • Binance charges a quite low commission fee
  • Multiple-Coin Support : BTC, ETH, LTC, BNB...
  • High Liquidity
  • Multiple-Language Support
  • binance
    changelly
  • Instant cryptocurrency exchange
  • More than 500,000 satisfied users
  • Changelly charges a quite low commission fee
  • Safety Stability
  • changelly
    bitmex
  • Bitmex - Bitcoin Mercantile Exchange is a cryptocurrency derivatives trading platform.
  • Bitmex charges a quite low commission fee
  • Safety Stability
  • changelly

    Best Brokers to Trade Crypto

    Broker Profile Open Account
    Capital Index
  • Minimum Deposit: 50 USD
  • Leverage of up to 1:500
  • Broker Type : STP
  • Regulation : FCA (UK), ASIC, SCB
  • HotForex
    XM
  • Offer: 30 USD No Deposit Bonus - 50% Deposit Bonus
  • Minimum Deposit: 5 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CySEC,ASIC ,FCA
  • XM
    FBS
  • Offer: 50USD No Deposit Bonus
  • Offer: 100% Deposit Bonus
  • Minimum Deposit: 1 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CRFIN (Russia), 009069697 IFSC (Belize), IFSC/60/230/TS/12
  • FBS

    Contact us
    fxvnpro@gmail.com