Societe Generale: Indian Rupee Gains Limited vs US Dollar
Societe Generale reports that the Indian Rupee's appreciation against the US Dollar is restricted as domestic money markets continue to unwind tightening expectations.
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Indian money markets have continued to unwind tightening expectations, according to Societe Generale. The 1-year swap rate has dropped to 5.75%, while the 10-year Indian government bond yield has eased.
These developments suggest limited upside for the rupee against the US dollar in the near term. The market is pricing in a less aggressive monetary policy stance, which reduces the currency's yield advantage.
Source: FXStreet Forex News