There's good news and bad news for the bulls.
The good news first. India's July trade deficit at $11.45 billion was narrower than expected. However, the all important consumer price inflation surged to 2.4 percent, faster than the 2.1 percent estimate.
The surge has put focus on the minutes of the RBI meeting due later today. The rebound raises questions about this month’s interest-rate reduction and scope for further stimulus.
In his Independence day address, PM Narendra Modi said the number of new taxpayers in India more than doubled in the past five months and about Rs 3 lakh crore came back to the banks after the government’s cash ban brought more people into the fold of the formal economy.
Speaking to BloombergQuint, Bhupesh Bameta, head of research at Edelweiss FX and Rates said the rupee is expected to trade in a range of 63.90-64.30 against the US dollar, unless there is a clear direction in the North Korean crisis.
The Indian rupee may open weaker tracking its Asia-Pacific peers. The region's currencies were mostly down against the dollar with the Phillipine peso falling the most.
(This article originally appeared in BloombergQuint, and has been republished here with permission.)
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)