Risk aversion will benefit India’s economy

Several economic figures in the United States are projected to push the dollar lower than its rupee counterpart. Risk aversion will benefit India’s economy with surges in gold prices, instead. The US is projected to report a decline in three key figures: Composite PMI, Manufacturing PMI, and Services PMI for the month of September. As the pair’s 200-day moving average approaches its 50-day average, bearish investors are almost certain the pair could only fall near-term. This is despite a looming possibility that India could have seen a double-digit contraction for its gross domestic product in the previous quarter. Economic activity is expected to keep itself at a slow pace in the Indian economy throughout the year. But investors are a little more optimistic about its upcoming activity: its federal data confirmed that it has just seen the lowest count of new coronavirus infections in the country, now on its fourth day of more recoveries than new infections.