Sharp fall in India's trade

India's trade numbers showed sharp drops in both exports and imports in May. 
Exports contracted for the 6th straight month at -20.2%y/y from -14.0% in April. More pertinently, it contracted by double digits for the 5th consecutive month. Imports slumped to -16.5% from -7.5% in April. 
Trade deficit subsequently narrowed to a three-month low of USD10.4bn from USD11.0bn in April. The release suggests a slower growth trajectory dragged by sustained weakness in both domestic and external demand. USD-INR gained for the fourth straight session, closing higher by 0.13% to 64.25 yesterday, notes Commerzbank.