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The Indian Rupee trades sideways in Monday’s Asian trading hours.  Elevated Middle East geopolitical risks might boost the pair, while possible RBI intervention might cap the upside.  Indian CPI and Industrial Production data will be the highlights on Monday.  The Indian Rupee (INR) trades on a flat note on Monday amid the consolidation of the Greenback. Traders turn cautious amid the geopolitical risks. The US is strengthening its capabilities in the Middle East by sending an additional guided missile submarine to the region “in light of rising regional tensions”, per ABC News. This might boost a safe-haven currency like the US Dollar (USD) in the near term. However, the likely intervention by the Reserve Bank of India (RBI) could support the local currency and cap the significant upside for the pair.  Looking ahead, traders will monitor the release of the Indian Consumer Price Index (CPI) and Industrial Production. On the US docket, the Producer Price Index (PPI), Consumer Price Index (CPI) and Retail Sales will be released later this week. The softer inflation data could reinforce expectations that the Federal Reserve (Fed) will start cutting interest rates soon, which might drag the Greenback lower.  Daily Digest Market Movers: Indian Rupee holds steady ahead of Indian CPI report Amit Somani, senior fixed income fund manager at Tata Asset Management, noted the balance of risks on the Indian Rupee remains on the downside, adding that he expects the currency to move in the 83.80-84.20 range for the week.  “The Reserve Bank of India (RBI) has been very watchful of the Rupee’s movement and has intervened in the spot market to ensure it stays near 84”, said Jigar Trivedi, senior analyst at Reliance Securities. The Indian CPI is expected to show an increase of 3.65% YoY in July, compared to 5.08% in the…

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Filed under: News - @ August 12, 2024 3:06 am