Indian rupee, bonds await RBI verdict; guidance on liquidity, currency moves eyed - Reuters

<a href="https://news.google.com/rss/articles/CBMiwAFBVV95cUxNWEF6NzNkeDBBVkUzTnVoUEplbnMwckEtT1cwLWJuc0gtaXRxeDdHdVY2bjdldFFMVnFhWlh5WGZ0dXR6eXpRT19odTBvTFplRkZ0cGlUOTg0cEZsdVVyNUlJa2YyWTlSY3dIdlcxUjMwdV94VFR1ZEJLLURPVlJld3hmUE5hZnlPQ3pxc09QUDZ6bEJRQ2p2RDR6VTk4UlIzZDM4YWNkMnFrbmIwVXlfeGhjN0V0czdSaUhJaWhTcmI?oc=5" target="_blank">Indian rupee, bonds await RBI verdict; guidance on liquidity, currency moves eyed</a>&nbsp;&nbsp;<font color="#6f6f6f">Reuters</font>

India's rupee and government bond markets are awaiting the Reserve Bank of India's monetary policy commentary, as investors assess the impact of energy supply disruptions on the economy.

Market expectations of a potential rate hike have emerged, with swap markets pricing in a possible 25 basis point increase amid concerns over imported inflation and rising input costs.

The Reserve Bank of India has taken a significant step by banning banks from engaging in non-deliverable forwards with clients, widening the rift between local and global currency markets.

Economists discuss the potential impact of inflation and currency pressures on the Reserve Bank of India's interest rate decisions in the fiscal year 2027.

The rupee recorded its strongest recovery in 13 years, rising 173 paise to close at 93.1, after RBI tightened rules to curb speculative bets and forced a sharp unwinding of dollar positions.