At 83.10, the INR is not much stronger than it has been, but it looks as if maybe the Reserve Bank of India is going to be a bit more tolerant of appreciation and practice more asymmetric currency management.

Inflation has crept up towards the top of the RBI’s inflation target range, though this is almost all food-related, and will likely drop back closer to 5% in the near term. However, we still don’t see the RBI easing until after the Fed’s first move.

USD/INR – 1M 83.00 3M 83.00 6M 83.00 12M 84.00