The report stated it’s slowing the FDI (Foreign Direct Investment) flows, which affects the export manufacturer growth rate, which also slows down global demand and narrows down our policy rate with the US. The report projects that the rupee will reach 85.5 per 1 USD over the next 12 months. Several factors like India’s economic growth, and attractive real yields will stabilize the balance of payments due to its inclusivity in the Global Bond Index. However, the Reserve Bank Of India holds softer commodity prices and strong foreign exchange reserves. The Reserve Bank of India is in favor of the currency but still, it won’t check the other pressures on the list. The Reserve Bank Of India said they expected INR to trade with USD, over a 12-month horizon. On the other hand, they also highlighted the positive endeavors for the Indian currency They also said that India’s Global economic Growth may outsource the other global pressures that they may be facing as of now.
However, when we speak of steady domestic Investor inflows which affect the situation too, it works through the SIPs (Systematic Investment Plans) and a the foreign investments are resumed too. Indian stocks are are expecting to be strongly supported by the US Ferderal Reserve Rates and foreign investors, The report also pinpointed the major growth of the Indian Economy, higher governmental capital expenditure, rural recovery, urban consumption and the policy support.
According to the reports, Inflation will, trend lower, with \the decline in food prices as the summer and winter pass by. Although the challenges for ruppee is increased, in the next 12 months which underdetermine, highlighting the macroeconomic fundamentals.
