Rupee And Bond Update : The Indian rupee ended flat against the U.S. currency on Thursday ahead of the Monetary Policy Committee decision.
In a year where sellers dominated the currency, it’s become increasingly difficult to expect anything different to happen. For Q1 of 2021, I’m looking for a continuation in the bearish backdrop that’s become so incredibly loud around the US Dollar.
The dollar slipped and global stocks held near a record as trading got underway in Asia on Monday. Gold and Treasury yields climbed.
USD/INR : We expect Indian Rupee (INR) to slip to a record low of 80 by Q3. “The rising number of COVID-19 cases in India could lead to another extension in the lockdown beyond 3 May, which will pose downside risks to our GDP growth forecast of 1.6% for FY21.”
The yen and other safe-haven currencies were in demand on Monday, along with assets such as gold, as investors fretted that the killing of Iran’s most prominent military commander by the United States could trigger a broader Middle East conflict.