The Indian rupee depreciated to 85.75 against the dollar on Monday, influenced by robust dollar demand from both foreign and domestic banks. Despite a weakening dollar index and gains in other Asian currencies, the rupee’s decline was tempered by likely RBI intervention through state-run banks. The rupee traded within a narrow band, impacted by oil companies and importer demand.
Will RBI announce steep rate hikes? Nomura sees up to 50 bps increase by Dec, dismisses 125 bps hike fears
Nomura expects the RBI to pursue a limited tightening cycle, with a possible 50 bps rate hike by December, as food and energy pressures rise