The post USD/INR drifts higher, RBI remains on high alert on inflation appeared on BitcoinEthereumNews.com.

Indian Rupee loses traction amid the renewed USD demand. The Ministry of Finance stated that they remain on high alert over inflationary risks. Market players await the US Jobless Claims Durable Goods Orders and UoM Consumer Sentiment survey. Indian Rupee (INR) trades softer on Wednesday amid the US dollar (USD) weakness. In its latest monthly economic review for October 2023, the Ministry of Finance stated that even as inflationary pressures have moderated, there are persistent downside risks to growth and macroeconomic stability from inflation, which keeps the government and the Reserve Bank of India (RBI) on high alert. Furthermore, the report suggests a decline in crude oil prices and sustained moderation in core inflation could help alleviate inflationary pressures. The minutes of the Federal Open Market Committee (FOMC) meeting released on Tuesday showed that all participants agreed to proceed carefully and policy decisions at every meeting would continue to be based on the totality of incoming information and economic outlook as well as the balance of risks. Investors will keep an eye on the US data, including the weekly Jobless Claims Durable Goods Orders, and the University of Michigan Consumer Sentiment survey, due later on Wednesday. In the meantime, the dollar demand from state-run and foreign banks and foreign funds outflows might impact the INR.  Daily Digest Market Movers: Indian Rupee remains sensitive to multiple headwinds India’s Ministry of Finance said in the report that the government and the Reserve Bank of India (RBI) remain on high alert over inflationary risks. The finance ministry’s report highlights the need to monitor external financial flows closely, acknowledging their direct impact on the Indian Rupee’s value and the balance of payments. RBI increased its gold holdings by nine tonnes during the September 2023 quarter, bringing its total to 337 tonnes amassed by central…

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Filed under: News - @ November 22, 2023 9:26 am