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27 Jan 2014
Flash: RBI would stay on the sidelines – BBH
FXstreet.com (Barcelona) - Win Thin, Global Head of Emerging Market Currency Strategy at Brown Brothers Harriman, expects the Reserve Bank of India to keep rates unchanged when it meets on Tuesday.
Key Quotes
"Reserve Bank of India meets Tuesday and is expected to keep policy rates steady. There is a very small chance of a surprise rate hike should Rajan want to drive the point of inflation targeting, but this is highly unlikely. December CPI and WPI readings slowed, which was consistent with Governor Rajan’s view that the spike was temporary."
"Still, the fundamentals remain fairly weak. The rupee had been outperforming despite weak fundamentals but the overall EM selling finally took a toll. USD/INR traded above 63.00 today, its highest level since November 14. Resistance seen near 64.00, while support seen near 62.50 and then 62.00."
Key Quotes
"Reserve Bank of India meets Tuesday and is expected to keep policy rates steady. There is a very small chance of a surprise rate hike should Rajan want to drive the point of inflation targeting, but this is highly unlikely. December CPI and WPI readings slowed, which was consistent with Governor Rajan’s view that the spike was temporary."
"Still, the fundamentals remain fairly weak. The rupee had been outperforming despite weak fundamentals but the overall EM selling finally took a toll. USD/INR traded above 63.00 today, its highest level since November 14. Resistance seen near 64.00, while support seen near 62.50 and then 62.00."