USD/INR remains stronger as traders evaluate RBI’s policy outlook following inflation data
The post USD/INR remains stronger as traders evaluate RBI’s policy outlook following inflation data appeared on BitcoinEthereumNews.com.
The Indian Rupee faces challenges due to foreign exchange outflows. India’s annual inflation rose to a nine-month high of 5.49% in September, dampening the likelihood of RBI’s rate cuts. The downside of the INR could be restrained due to falling Oil prices, as India is world’s third-largest Oil importer. The USD/INR pair remains near its all-time high at 84.14 as the Indian Rupee (INR) grapples with challenges stemming from foreign exchange outflows. This situation arises as traders evaluate the policy outlook for the Reserve Bank of India (RBI) in light of the recent inflation data from India. India’s Consumer Price Index (CPI) rose to a nine-month high of 5.49% year-over-year in September, up from 3.65% in the previous month and well above market expectations of 5.0%. This increase represents the highest inflation rate recorded this year, surpassing the Reserve Bank of India’s (RBI) target of 4%. As a result, expectations for earlier rate cuts by the RBI have been tempered. The Indian Rupee may receive support from falling Oil prices, given that India is the world’s third-largest Oil importer. Crude Oil prices are facing downward pressure due to concerns about global demand, which have outweighed the impact of supply worries related to the ongoing uncertainty in the Middle East conflict. West Texas Intermediate (WTI) Oil price extends its losing streak for the fourth successive session, trading around $70.30 per barrel, at the time of writing. Daily Digest Market Movers: Indian Rupee struggles due to foreign exchange outflows The US Dollar (USD) continues to strengthen, bolstered by strong employment and Consumer Price Index (CPI) data that have lowered expectations for aggressive easing by the Federal Reserve (Fed). Markets are now projecting a total of 125 basis points in rate cuts over the next 12 months. According to the CME FedWatch Tool,…
Filed under: News - @ October 16, 2024 4:25 am