Indian economy has been titled as the fastest growing economy of the Q1, 2018. And India has continued to maintain this position.
On Thursday, the initial trends pointed that the India currency value had strengthened against that of UAE’s Dirhams.
The rupee had strengthened from 18.41 against the dirham in the early morning to 18.34 later on Thursday evening.
During Q1- the January to March time period, Indian economy grew by 7.7% surpassing China’s growth of 6.8%.
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Vijay Valecha, the chief market analyst at Century Financial Brokers, said India beat analyst estimates and this helped it retain its position as the 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% surge in crude imports to $105 billion this financial year from $88 billion in 2018 financial year.
“Indian inflation has risen to 4.6% in April and it is above the RBI’s target zone of 4%, weakening the monetary policy scenario. Unless the RBI hikes rates there could be a further weakening of rupee to 19.10 level against dirham,” Valecha said.
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