The Indian rupee showed resilience on Wednesday, recovering from earlier dips, a relief attributed to possible central bank measures. Concurrently, the Reserve Bank of India governor’s remarks on interest rate hikes being ‘premature’ led to a notable decline in forward premiums. This shift, alongside a robust dollar, put pressure on Asian currencies and shaped overall market expectations, particularly with a US Federal Reserve rate hike on the horizon.
Originally published by The Economic Times https://economictimes.indiatimes.com/markets