The sell-off in the INR in near-term can be seen as opportunity to re-enter long positions in the currency versus the EUR.
If the oil prices remain low, the improvement in India's current account and fiscal balance should sustain. While other emerging market currencies effected by China's slow down and re-balancing, India is less vulnerable comparatively as it has less share in the exports with China.
Improved RBI's policy credibility improved investor confidence, and India is the fastest growing economy now, with China's growth dropping below 7%.
"FDI has picked up strongly over the past year, and portfolio inflows will likely be sustained. Reform progress has been uneven this year, but we believe the NDA's failure to win Bihar is unlikely to derail the positive direction of reforms", says Barclays in a research note.


South Korea Vows Action to Stabilize Won as Currency Weakens Despite Strong Fundamentals
China Holds Loan Prime Rates Steady in January as Market Expectations Align
BOJ Expected to Deliver December Rate Hike as Economists See Borrowing Costs Rising Through 2025
FxWirePro: Daily Commodity Tracker - 21st March, 2022
RBA Deputy Governor Says November Inflation Slowdown Helpful but Still Above Target
U.S. Urges Japan on Monetary Policy as Yen Volatility Raises Market Concerns
Fed’s Anna Paulson Signals Rate Cuts May Come Later as Inflation Cools and Labor Market Stabilizes




