TI:Rupee gains on global risk-on; domestic outlook uncertain
MUMBAI: The rupee rose on Tuesday, snapping a two-session losing streak as demand for global risk assets was bolstered by better-than-expected US and German economic indicators, and talk Spain may soon ask for a bailout.
However, domestic factors capped broader gains, given concerns about whether the Reserve Bank of India will cut interest rates on October 30, thus potentially bolstering growth while increasing foreign investor inflows into Indian assets.
Whether the RBI will respond to the government's fiscal and economic measures remains uncertain. Deputy governor HR Khan said on Tuesday monetary policy and fiscal policy must work in tandem, slightly raising expectations for rate cuts.
