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The Indian Rupee weakens near an all-time low in Thursday’s Asian session.  A stronger USD, lacklustre sentiment in domestic equity markets, and sustained outflow of foreign funds weigh on the INR.  Investors await the Fedspeak on Thursday for a fresh impetus.  The Indian Rupee (INR) declines to near a fresh record low on Thursday. The local currency remains under pressure on the back of a stronger US Dollar (USD) and higher crude oil prices. Slowing economic growth and foreign outflows from stocks also undermine the INR.  On the other hand, the Reserve Bank of India (RBI) is likely to sell the USD to limit the INR’s losses. Investors will keep an eye on the Fedspeak on Thursday for more cues about the US interest rate outlook this year. On Friday, the attention will shift to the US employment data for December, including the Nonfarm Payrolls (NFP), Unemployment Rate and Average Hourly Earnings.  Indian Rupee faces pressure amid a firmer USD and concerns over India’s slowing economic growth  The Indian Rupee is likely to weaken to 86.8 per dollar this quarter, according to MUFG, while Citigroup Inc. expects it to fall to 86.35. USD/INR fell 0.2% to a new record closing low of 85.8550 on Wednesday.  India’s economic growth rate is estimated to slip to a four-year low of 6.4% in FY25, down from 8.2% in FY24. The FOMC minutes from the Fed’s December 17-18 meeting showed policymakers agreed inflation was likely to continue slowing this year but also saw a rising risk that price pressures could remain sticky due to the potential effect of Donald Trump’s policies. The US weekly Initial Jobless Claims for the week ending January 4 declined to 201K from the previous week’s print of 211K, according to the US Department of Labor (DOL) on Wednesday. This…

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Filed under: News - @ January 9, 2025 3:27 am