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The Indian Rupee weakens in Tuesday’s Asian session. Persistent US dollar demand and unabated outflow of foreign funds weigh on the INR.  Indian and US CPI inflation reports will take center stage on Wednesday.  The Indian Rupee (INR) extends the decline on Tuesday, pressured by strong US Dollar (USD) demand by importers. Maturities in the non-deliverable forwards (NDF) market also exert some selling pressure on the local currency that has been hit by foreign fund sales of local equities since late September. The uncertainty caused by US President Donald Trump’s tariff policy might impact emerging market currencies like the INR. Nonetheless, any significant depreciation of the local currency might be limited due to the foreign exchange intervention from the Reserve Bank of India (RBI). Furthermore, a decline in crude oil prices might help limit the INR’s losses as India is the world’s third-largest oil consumer. In the absence of top-tier economic data releases from the United States and India on Tuesday, the USD/INR pair will be driven by the Greenback. The Indian and US Consumer Price Index (CPI) inflation reports for February will be the highlights on Wednesday.  Indian Rupee edges lower amid portfolio outflows and global factors   “The rupee weakened because of an increase in dollar demand from oil companies, as Indian companies have started buying oil from the US,” a trader at a private bank said. Foreign investors have withdrawn almost $15 billion from Indian shares so far this year, putting outflows on track to surpass the record $17 billion registered in 2022. The selloff has wiped out $1.3 trillion from India’s market value. Trump declined on Sunday to predict whether the US could face a recession amid stock market concerns about his tariff actions on Mexico, Canada and China. The US Nonfarm Payrolls (NFP) came in…

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Filed under: News - @ March 11, 2025 3:14 am