HSBC: RBI to cut rates by 40bps in April-June meetings, USD/INR bounces-back to 73.50
In the view of the analysts at HSBC, the Reserve Bank of India (RBI) is likely to deliver a big rate cut in its April meeting to combat the coronavirus impact.
"Expect cumulative 40bps of India rate cuts in April-June, taking repo rate to 4.75%.
Expect bulk of India monetary easing in April meeting, accompanied by liquidity measures.
India Govt. may end up with wider fiscal deficit of about 3.7% of GDP in FY21."
USD/INR heads back towards 16-month top
USD/INR bounces-back a dip to 73.31 reached in the opening trades, as the bulls briefly regain the 73.50 level.
The spot trades close to the 16-month high of 73.632 recorded on Wednesday.
USD/INR technical levels to watch