India: CPI Inflation to correct in February – Standard Chartered
India will release January industrial production (IIP) and February CPI inflation data on 12 March while it is scheduled to release February trade data from 12-15 March. Economists at Standard Chartered Bank share their forecasts. USD/INR trades at 73.6405.
Key quotes
“We expect IIP growth of 0.5% versus a 0.3% decline in December.”
“We expect CPI inflation to have fallen to 6.50% from 7.59% in January, mainly driven by a correction in vegetable prices as fresh supply hit the markets, lower prices of egg, meat and fish due to the coronavirus outbreak, and domestic retail fuel price cuts.” Read more…
USD/INR prints multi-month tops near 74.50
The Indian rupee is in free-fall at the end of the week and it has lifted USD/INR to the highest level since October 2018 near the 74.50 area.
USD/INR higher on INR-selling, coronavirus
The Indian currency has been under increasing selling pressure since late February along with mounting concerns over the fast-spreading coronavirus and its potential impact on the domestic (as well as global) economy.
In addition, Friday’s news that the central bank (RBI) seized control over the Yes Bank – the country’s fourth-largest private lender – has been also weighing on the rupee and exacerbated the upside in the pair to fresh tops near 74.50 earlier in the session. Read more…
