The post USD/INR gathers strength ahead of Indian, US CPI data appeared on BitcoinEthereumNews.com.

Indian Rupee edges lower on the stronger US Dollar. Indian government bond yields and the Indian rupee will be influenced by domestic and US inflation data this week. Investors will take cues from the Indian and US CPI data ahead of the FOMC meeting. Indian Rupee (INR) trades on a negative note on Tuesday amid renewed US Dollar (USD) demand. The Reserve Bank of India (RBI) left the benchmark repo rate unchanged at 6.50%, as expected last week. The RBI remains in a wait-and-see mode as it monitors inflationary risks. The Indian economy surpassed estimates in the September quarter, expanding 7.6%, making it the fastest-growing major country. The RBI forecasts a growth rate in India’s GDP at 7.0% in FY24. Domestic and US inflation data, as well as the Federal Open Market Committee’s (FOMC) decision on interest rates, will all have an impact on Indian government bond yields and the Indian rupee this week. Market players have priced in a nearly 45.6% odds that FOMC will begin cutting rates from March 2024 and have priced in a 50% chance of 125 basis points (bps) of rate cuts in 2024, according to the CME FedWatch Tool. Investors will keep an eye on the Indian Consumer Price Index (CPI) for November, Industrial Production, and Manufacturing Output. On the US docket, the CPI figures will be due on Tuesday. The attention will shift to the FOMC meeting on Wednesday, with no change expected. Daily Digest Market Movers: Indian Rupee faces challenges from global headwinds According to the International Monetary Fund (IMF), Indian Real Gross Domestic Product (real GDP) is forecast to expand by more than 6.0% in both 2023 and 2024. Prime Minister Narendra Modi set an ambitious target to boost India to become a $5 trillion economy within the next five years.…

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Filed under: News - @ December 12, 2023 5:14 am