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In the view of the analysts at HSBC, the Reserve Bank of India (RBI) is likely to deliver a big rate cut in its April meeting to combat the coronavirus impact.

Key quotes

“Expect cumulative 40bps of India rate cuts in April-June, taking repo rate to 4.75%.

Expect bulk of India monetary easing in April meeting, accompanied by liquidity measures.

India Govt. may end up with wider fiscal deficit of about 3.7% of GDP in FY21.”            

USD/INR heads back towards 16-month top

USD/INR bounces-back a dip to 73.31 reached in the opening trades, as the bulls briefly regain the 73.50 level.

The spot trades close to the 16-month high of 73.632 recorded on Wednesday.

USD/INR technical levels to watch