Analysts at TD Securities, note that the INR has rallied over March, erasing its losses from January, and playing catch up with other Asian currencies.
Key Quotes
“Sentiment for the currency has improved in the wake of an improvement in Prime Minister Modi’s poll standing following India’s actions in after the recent terrorist attack in Kashmir.”
“We now see limited scope for INR spot appreciation but think that even with a further RBI rate cut the currency will remain attractive from a risk and carry adjusted returns perspective, especially at a time of relatively low FX volatility and declining G10 yields.”
“We continue to advocate long INR positions versus low yielders such as KRW or SGD.”
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