USDINR
Last week, the Indian Rupee traded in a range bound manner with a slight stronger bias tracking the dollar’s broad losses on receding fears about the U.S. banking sector. A deal to buy the assets of Silicon Valley Bank (SVB) allayed concerns about the U.S. banking sector to an extent, undermining demand for the safehaven dollar. Moreover, lower risk aversion prompted investors to reconsider expectations regarding the U.S. Federal Reserve’s rate path. The odds now are almost 50-50 on whether the Fed will hike rates by 25 basis points at the May meeting or opt for a pause.
