Indian rupee gains but GDP impact seen muted

Indian rupee gains but GDP impact seen muted
Indian rupee gains but GDP impact seen muted

The Indian economy grew 7.7 per cent during the first quarter, surpassing China's growth of 6.8 per cent.

The Indian rupee strengthened on Thursday as an initial reaction after India retained its title as the world's fastest growing economy in Q1 2018.

The rupee had strengthened from 18.41 against the dirham in the early morning to 18.34 later on Thursday evening.

The Indian economy grew 7.7 per cent during the first quarter, surpassing China's growth of 6.8 per cent in the January to March quarter (click here for detailed report).

Vijay Valecha, chief market analyst at Century Financial Brokers, said India beat analyst estimates and this helped it retain its position as fastest growing economy of the world ahead of China.

He pointed out that impact of GDP growth on Indian rupee is likely to be muted as external variables have worsened on an expected 20 per cent surge in crude imports to $105 billion this financial year from $88 billion in 2018 financial year.

"Indian inflation has risen to 4.6 per cent in April and it is above the RBI's target zone of 4 per cent, weakening the monetary policy scenario. Unless, the RBI hikes rates there could be further weakening of rupee to 19.10 level against dirham," Valecha said.

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نشكركم زوار العرب اليوم على تصفح موقعنا وفى حالة كان لديك اى استفسار بخصوص هذا الخبر Indian rupee gains but GDP impact seen muted برجاء ابلاغنا او ترك تعليق الأسفل المصدر : khaleejtimes

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