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The Indian Rupee drifts higher in Monday’s Asian session.  Elevated oil prices and sustained outflows from local stocks weigh on the INR; RBI intervention might help limit its losses.  India’s Wholesale Price Index (WPI) inflation data will take center stage on Monday.  The Indian Rupee (INR) recovers some lost ground on Monday after retreating to an all-time low in the previous session. The concerns about the recent spike in oil prices amid geopolitical tensions, significant foreign investor sell-offs from the equity market and higher demand for the greenback from foreign banks undermine the local currency.  Nonetheless, the likely intervention from the Reserve Bank of India (RBI) by US Dollar sales from state-run banks might cap the downside for the INR. Traders will keep an eye on India’s Wholesale Price Index (WPI) Inflation on Monday, which is expected to rise to 1.90% YoY in September from 1.31% in August. On the US docket, the NY Empire State Manufacturing Index for October will be released.  Daily Digest Market Movers: Indian Rupee recovers, potential upside seems limited “Indian Rupee fell below the 84 per US Dollar mark for the first time on demand from foreign banks amid FII outflows and elevated crude oil prices. Weak domestic markets also weighed on the Rupee,” said Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas. The annual PPI rose 1.8% YoY in September, compared to a 1.9% increase seen in August, and came in above the market expectation of 1.6%. The core PPI climbed 2.8% YoY in the same period, surpassing analysts’ forecast of 2.7%.  On a monthly basis, the US PPI was unchanged in September, while the core PPI was up 0.2% during the same period. The preliminary reading of the US University of Michigan Consumer Sentiment Index fell to 68.9 in October from 70.1 in…

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Filed under: News - @ October 14, 2024 3:05 am