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INR: Scarcity of capital inflows – MUFG

MUFG's analysis indicates that the Indian Rupee (INR) is likely to face challenges due to rising money market rates and a scarcity of capital inflows. Despite the Reserve Bank of India's efforts to inject liquidity, the report suggests that these measures may not be sufficient to support the INR in the current market conditions. The outlook remains cautious for the INR as it navigates these headwinds.

Outlook for Indian Rupee

"Meanwhile, INR money market rates have if anything risen despite RBI’s announcement to inject liquidity worth more than US$23bn on Friday, and more than US$40bn since December last year."

"The key constraint for INR FX and rates markets is that capital inflows remain scarce."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

USD/CHF falls to lowest level since August 2011 on Greenback weakness

USD/CHF comes under heavy selling pressure on Tuesday, sliding more than 1% as broad-based weakness in the US Dollar (USD) fuels demand for the Swiss Franc (CHF). At the time of writing, the pair is trading around 0.7666, marking its lowest level since August 2011.
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Gold extends rally to seven days as trade war, FX fears roil markets

Gold (XAU/USD) rallies for the seventh consecutive day, up by more than 0.60% on Tuesday, sponsored by increasing geopolitical tensions sparked by the trade war and threats of a possible intervention in the FX space to boost the Japanese Yen.
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