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Reserve Bank of India
Trends
- 1Broadening inflation builds case for RBI tightening●Broadening inflation, robust growth, global hikes build case for India RBI tightening
Analysts point to broadening inflation pressures, resilient economic growth and interest rate hikes by central banks worldwide as strengthening the case for the Reserve Bank of India to tighten monetary policy. The argument is that with price rises spreading beyond food and fuel and growth holding firm, the central bank has both the reason and the room to act, in line with the global tightening cycle.
- 2Rupee hovers near 96 per dollar as RBI steps in●Indian rupee pinned just shy of 96/USD as RBI intervention counters oil woes
The Indian rupee is trading just short of 96 against the US dollar, with the Reserve Bank of India intervening to limit the slide. Pressure on the currency is being driven largely by India's oil import costs, which have weighed on the balance of payments. The central bank's actions are keeping the rupee range-bound near record-low levels, and markets are watching how long the RBI can hold the line.
- 3RBI suspected of propping up rupee as oil prices climb●Indian central bank likely shielding rupee as US-Iran impasses lifts oil prices, traders say
Traders believe India's central bank, the Reserve Bank of India, is intervening in currency markets to support the rupee. Pressure on the currency has mounted after stalled US-Iran negotiations pushed oil prices higher, threatening to widen India's import bill. The bank has not commented on the suspected intervention, which is a routine part of its currency management.