Reuters Market Eye - Domestic politics will increasingly drive the fate of the rupee, much like the Japanese yen or the euro, HSBC says in a note on Friday.
HSBC says its base case scenario is for the government to maintain its reform agenda, but warns the parliamentary process is "fraught with downside risks."
"This debate will be a litmus test for the INR and the reform process," HSBC writes. "If we were to a see a reversal of some of these recent reforms, it would undoubtedly put increasing weakening pressure on the INR."
HSBC expects "strong upward pressure" on the USD/INR should the reform process falter, but for the pair to retrace its recent gains should the government gain traction with its policies.
India accords residency status to foreign investors
NEW DELHI India approved a plan on Wednesday to allow foreign investors to settle, emulating a policy in countries such as the United States and Singapore to woo investment from abroad.
India's fiscal deficit reaches 74 percent of full-year target in July
NEW DELHI India's fiscal deficit during April-July was 3.93 trillion rupees ($58.69 billion), or 73.7 percent of the budgeted target for the fiscal year ending in March 2017, government data showed on Wednesday.
Wall Street opens little changed
U.S. stocks opened little changed on Tuesday as investors looked for catalysts to drive the markets while keeping one eye on clues for the possible timing of the next interest rate hike.