Global Markets Daily: More Constructive Outlook for India’s FX and Bond Markets

Goldman Sachs has adopted a more constructive outlook on Indian FX and bond markets, driven by supportive RBI policies and improved external balance fundamentals.

Key Takeaways

• 1.The outlook for the Indian Rupee (INR) has improved due to new RBI FX measures, lower oil prices, and a stronger balance of payments.
• 2.RBI measures are expected to generate approximately US$60bn in capital inflows for India in CY2026.
• 3.The firm recommends a short THB/INR position and a long position in Indian 30-year government bonds.

Table of Contents

• More Constructive Outlook for India’s FX and Bond Markets
• TRADE IDEAS
• Best Trade Ideas Across Assets
• Disclosure Appendix

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