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USD/INR regains 96.00 as investors pull out from India
DBS Bank expects the USD/INR pair to keep an upside bias this week while India’s 10-year yield remains above 7.0% and RBI uses FX intervention and liquidity draining tools.
FXStreet, citing DBS Bank analyst Radhika Rao, said onshore Indian markets are under pressure from global developments as foreign portfolio investors have pulled out around $6.3 billion and USD/INR has traded back above 96.00.
Rao noted that the Reserve Bank of India has responded with FX intervention and liquidity draining tools, and DBS expects USD/INR to retain an upside bias for the week.
DBS also tied the outlook to domestic rates, saying India’s 10-year yield staying above 7.0% supports the broader bias in the currency pair.