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According to Frances Cheung, head of macro strategy at Westpac, the INR has outperformed regional peers as the investors have been focusing on the potential support to growth since the RBI rate cut decision.

Key Quotes

“Given the budget is out of the way, the INR may garner some temporary support near-term. However, there is question as to whether India’s budget targets can be met with the revenue projection quite aggressive.”

“Any stimulus effect on growth will take time to emerge, while the expansionary fiscal and loosening monetary stance should be INR negative beyond the short-term reaction.”