The Indian Rupee did not gain much ground against the US Dollar in the past few sessions. Economists at Commerzbank expect the USD/INR pair to hover around the 82 mark.

RBI has a tricky decision on its hands

“Given strong domestic demand and elevated core inflation, RBI is likely to stick with a hawkish bias and deliver another 25 bps hike to 6.75%. However, it will also keep a close eye on global developments and the contagion effects from the US bank failures.”

“An increase in contagion risks will most likely force RBI to take a cautious stance and stay on hold.”

“We look for consolidation near term around the 82.00 level.”