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Indian Rupee trades sideways on Tuesday amid a cautious mood.  Higher US bond yields and lower bets on Fed rate cuts might drag the INR lower against the US Dollar.  The respective Indian and US Consumer Price Index (CPI) inflation data are due on Wednesday ahead of the Fed rate decision.  Indian Rupee (INR) remains flat on Tuesday despite the firmer US Dollar (USD). The rising US bond yields and lower bets on rate cuts from the Federal Reserve (Fed) after stronger-than-expected US employment data lift the Greenback for the time being. Nonetheless, the lower crude oil prices and easing political uncertainties surrounding India’s election might support the INR and cap the upside for the pair. Additionally, the Reserve Bank of India (RBI) is likely to intervene in the market to prevent the Indian Rupee from depreciating.  Market players will keep an eye on India’s Consumer Price Index (CPI), which is due on Wednesday. On the US docket, the May CPI will be released ahead of the Fed interest rate decision. After the Fed meeting, the US central bank will update the Summary of Economic Projections (SEP). Any hawkish message from Fed officials is likely to boost the Greenback against its rivals.  Daily Digest Market Movers: Indian Rupee awaits the fresh catalysts  The INR closed at 83.5050 against the US Dollar, down 0.1% from its close at 83.3725 in the previous session. India is estimated to expand at 7% in FY25 as the post-pandemic recovery in the capital expenditure (capex) cycle, fueled by government spending and robust residential real estate demand, said Tanvee Gupta Jain, chief India economist at UBS Securities. “We expect the rupee to trade with a slight negative bias on strong US Dollar amid rising expectations of a delay in interest rate cut by the US Federal…

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Filed under: News - @ June 11, 2024 3:24 am