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INR: Trade deal boosts performance – BBH

According to Brown Brothers Harriman (BBH) analysts, the Indian Rupee (INR) has outperformed following a trade deal between the US and India. The agreement includes significant tariff reductions and is expected to alleviate pressure on the INR. The Reserve Bank of India (RBI) is anticipated to maintain its policy rate, with potential for further easing in the future.

US-India trade deal impacts INR

"INR outperformed across the board and USD/INR plunged by over 1.5% after hitting a record high of 92.00 last week. The US and India reached a trade deal."

"The trade deal eliminates an important drag on INR and leaves room for the Reserve Bank of India (RBI) to ease further."

"We have a 25bps cut to 5.00% penciled-in. India core inflation is close to the lower end of the bank’s 2% to 6% target range and fiscal policy is modestly restrictive."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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