Indian rupee strengthens on rate cut

India remains a ray of sunshine amid cloudy emerging markets


In a surprise move the Reserve Bank of India (RBI) cut the country's interest rate by 50 basis points (bp) on September 29. While the reduction in India's policy repo rate from 7.25% to 6.75% – the fourth cut made by the RBI in 2015 and the largest by far – was largely unexpected by the market, the rupee strengthened on the news.

Mallika Sachdeva, Asian FX strategist at Deutsche Bank, says the bank's view was for a cut of 25bp, but that from a strategy perspective the monetary easing is actually

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