Market Overview

India Inflation Hits 3 Year Low


Inflation appears to have finally turned a corner in India, heightening the prospects for an interest rate cut at the end of the month, and one of the biggest beneficiaries could be the rupee, said market watchers.

India's headline inflation for December came in at 7.18 percent, its lowest level in three years – against forecasts of 7.4 percent – marking three consecutive months of declines. This offers room for the Reserve Bank of India (RBI) to support growth via a rate cut, which in turn could improve the sentiment for the country's flagging currency, said analysts.

“The markets will cheer a rate cut, and that could elicit capital inflows. Anything that restarts growth and the investment cycle will be positive for the rupee,” Aninda Mitra, head of Southeast Asia economics at ANZ told CNBC on Monday.

via CNBC

Get OANDA's exclusive weekly Market Pulse FX

Email Address: Preferred Format:

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: News Bonds Forex Global Economics Markets Trading Ideas


Related Articles

View Comments and Join the Discussion!

Partner Center