0214 GMT - The rupee's recovery from recent lows has fueled speculation that the Reserve Bank of India intervened to steady the currency, an outcome DBS's Philip Wee says is likely welcome ahead of a Modi-Trump meeting. Pulling INR back from record lows could help defuse currency-related tensions at the Modi-Trump meeting, he says in a note. The rupee rallied Tuesday after reported intervention by the central bank to quell a buildup of speculative INR shorts, the FX strategist says. Still, DBS expects USD/INR to rise to 88.8 by mid-2025 on the dollar's haven status from Trump tariffs and the Fed delaying rate cuts to 2H. It also sees the RBI lowering rates again in 2Q. USD/INR last at 86.69. (fabiana.negrinochoa@wsj.com)
(END) Dow Jones Newswires
February 11, 2025 21:14 ET (02:14 GMT)
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