The post USD/INR weakens on RBI’s likely intervention appeared on BitcoinEthereumNews.com.

The Indian Rupee gains momentum in Tuesday’s Asian session.  The routine interventions by the RBI support the INR; portfolio outflows and a stronger USD might cap its upside.  Kansas City Fed President Jeffrey Schmid is set to speak later on Tuesday.  The Indian Rupee (INR) extends the rally on Tuesday, bolstered by the intervention by the Reserve Bank of India (RBI) to prevent the local currency from significant depreciation. Furthermore, the recovery in crude oil prices provides some support to the INR as India is the world’s third-largest oil consumer.  Nonetheless, the sustained outflow of foreign funds and the renewed US Dollar (USD) demand might exert some selling pressure on the Indian Rupee. A decline in most Asian currencies also weighs on the local currency for the time being. In the absence of top-tier US economic data releases on Tuesday, the attention will be on risk sentiment and the US Federal Reserve’s (Fed) Jeffrey Schmid speech.  Indian Rupee rebounds as RBI Intervention caps decline The Indian equity benchmark indices, the Sensex, declined 0.31% to 77,339.01 points on Monday, closing 10.05% below its record high level hit on September 27. The Nifty fell 0.34%, its longest falling streak in more than 20 months. India’s foreign exchange reserves fell to $675.65 billion for the sixth week in a row, from a record high of $704 billion in late September. DBS Bank estimated India’s economic growth will moderate to 6.0% in 2025 and 2026, down from 8.2% in 2024.  Moody’s Ratings projected the Indian economy to grow by 7.2% in 2024, driven by a gradual recovery in household spending and easing inflation pressures.  The National Association of Home Builders (NAHB) Housing Market Index climbed to 46.0 in November, the highest since April, from 43.0 in October, beating the estimate of 44.0.  USD/INR’s outlook…

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Filed under: News - @ November 19, 2024 3:22 am