USD/INR continues to remain within the range of 82.50-83.50 of the last six months. Commerzbank economists analyze the outlook for the Rupee following India's extraordinary GDP surprise.
Strong GDP growth in the fourth quarter
Fourth quarter GDP grew 8.4% year-on-yearand that of the third quarter was revised upwards to 8.1% from the initial 7.6%.
The Government revised upward the growth forecast for the current fiscal year 2023-2024 to 7.6% from 7.3% previously. For the next fiscal year 2024-2025, the outlook remains positive and we could see growth of over 7%.
For Prime Minister Modi, it will be a further boost to his popularity ahead of the federal elections in April and May. For the Reserve Bank of India, the strong growth momentum will only reinforce its tendency to keep the rate at 6.5% for the foreseeable future.
Stable inflation and strong economic outlook should continue to support INR.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
