The monetary unit of India advanced from its lowest value in about 60 days against the world’s reserve currency after the central bank implemented a surprise increase in borrowing costs, according to Bloomberg.
After having checked in at 7.75 percent, the repurchase rate climbed to 8 percent. Only three of 45 analysts and economists surveyed by the news service said they believed that increase by the Reserve Bank of India was coming as all others believed the rate would remain intact. The central bank of the subcontinent said it does not intend to implement additional intervention during the near term, according to Bloomberg.
“The RBI did what was needed,” chief executive officer Andrew Holland with Ambit Investment Advisors Pvt. In Mumbai told the news source on Tuesday. “The rate increase will help the rupee if the Fed tapers more.”
The Indian rupee climbed about 0.2 percent against the greenback on Tuesday, rising from its lowest value since the middle of this past November during the Monday trade session.
CNN reports though the interest rate increase was not expected, it marked the third time the central bank has spiked rates since September of last year.
The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI does business as Daniels Trading/Top Third/Futures Online. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI.
Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.
© 2021 StoneX Group Inc. All Rights Reserved