Flash: Reserve Bank of India might tighten soon - TDS

FXstreet.com (Barcelona) - The latest highlights out of India saw the RBI delay its mid-quarter monetary policy review to account for the FOMC announcement on Sept. 18, which according to the TD Secuties Emerging Markets Team, "raises the likelihood that tightening measures may be announced, although we expect no change."

On the outlook for USD/INR, it hit a record high og 68.845 last week, only receding when the RBI decided to intervene, however, as TDS notes, "external pressures will be key this week." In terms of rates, TDS thinks that "as the temporary measures linger on and there's a chance for further tightening, short term rates should remain under pressure."