USD/INR: RBI to maintain a hawkish bias, helping to mitigate Rupee weakness – Commerzbank

Economists at Commerzbank discuss Thursday’s RBI decision and the outlook for the Indian Rupee.

We may even see another 50-75 bps hike in total this year

“RBI meets this Thursday and is expected to hike its key rate by another 25 bps to 6.75%. The output cut by OPEC+ probably cemented RBI’s rate hike decision. RBI is expected to maintain a hawkish bias given the strong momentum in the economy. We may even see another 50-75 bps hike in total this year. This in turn could help to mitigate INR’s weakness.” 

“We look for sideways trading for USD/INR near term between the 81.50-83.00 range.”