The Indian Rupee is almost back to where it started the year. Economists at ING expect the INR to struggle to gain ground against the Dollar.

RBI has not completed its tightening cycle just yet

“Inflation remains stubbornly high, with the most recent prints showing a return to above-target headline inflation and a new focus on core rates making it unlikely that the Reserve Bank of India has completed its tightening cycle just yet.”

“And the whole issue of global bond inclusion has gone awfully quiet. With $30bn-$40bn of estimated inflows at stake, this will make a difference, if it happens. Announcement due 30 March.”

“USD/INR – 1M 83.00 3M 82.00 6M 81.00 12M 83.00”