USD/INR weakens on RBI intervention, investors brace for US CPI release
The post USD/INR weakens on RBI intervention, investors brace for US CPI release appeared on BitcoinEthereumNews.com.
The Indian Rupee gains traction in Wednesday’s Asian session. RBI intervention helps to limit INR’s losses. The Indian and US CPI inflation data will be the highlights later on Wednesday. The Indian Rupee (INR) extends its upside on Wednesday, bolstered by the strong intervention from the Reserve Bank of India (RBI). Additionally, the US Dollar (USD) selling by exporters and profit-booking by speculators provide some support to the local currency. However, the upside for the INR might be limited due to the concern about India’s sluggish growth, widening trade deficit, rising crude prices and the risk of fresh US trade tariffs. Later on Wednesday, investors will keep an eye on the Indian Consumer Price Index (CPI) for January, Industrial Output and Manufacturing Output. On the US docket, the CPI inflation will be closely watched. Also, the Federal Reserve’s (Fed) Raphael Bostic and Christopher Waller are set to speak. Indian Rupee strengthens despite trade tensions Indian Rupee depreciated 3.60% since September 2024, which was lower compared to the Japanese Yen (-6.49%), Canadian Dollar (-5.71%), British Pound (-7.58%), Australian Dollar (-9.04%), and Euro (-7.53%), according to the Bloomberg data. Foreign investors have pulled out over $7.5 billion, on a net basis, from Indian stocks and bonds so far this year. In his semi-annual report to Congress, Fed’s Powell said the Fed officials “do not need to be in a hurry” to cut interest rates due to strength in the job market and solid economic growth. Powell further stated that Donald Trump’s tariff policies could put more upward pressure on prices, making it harder for the central bank to lower rates. USD/INR’s shooting star received confirmation, downward pressure expected in the shorter term The Indian Rupee edges higher on the day. According to the daily chart, the USD/INR pair keeps the bullish vibe…
Filed under: News - @ February 12, 2025 3:23 am