USD/INR holds position due to foreign outflows from India, 16th BRICS Summit eyed
The post USD/INR holds position due to foreign outflows from India, 16th BRICS Summit eyed appeared on BitcoinEthereumNews.com.
The Indian Rupee struggles near all-time lows due to foreign selling in Indian equities. PM Modi is expected to meet with Chinese President Xi Jinping during the BRICS Summit. The Indian Rupee may hold its downside if the RBI intervenes in the market by selling US Dollars. The Indian Rupee (INR) holds steady against the US Dollar (USD) on Tuesday, bolstered by the potential for market interventions from the Reserve Bank of India (RBI) that have helped the INR weather equity outflows and the dollar’s strength. However, ongoing foreign selling continues to exert pressure on the INR, while concerns over the Middle East conflict have impacted risk-sensitive currencies. Foreign outflows from Indian equities are likely to persist as investors shift funds from India to China, attracted by the recent stimulus measures and relatively lower valuations. Prime Minister Narendra Modi has left for Russia to participate in the 16th BRICS Summit in Kazan. During the visit, Modi is scheduled to engage in bilateral talks with Russian President Vladimir Putin. He is also expected to meet with Chinese President Xi Jinping and hold discussions with leaders from the other BRICS member countries. Daily Digest Market Movers: Indian Rupee receives downward pressure from foreign outflows The US Dollar (USD) gained support following a surge in US Treasury yields, which climbed over 2% on Monday. This rise was fueled by signs of economic resilience and growing concerns about a potential resurgence of inflation in the United States, reinforcing expectations of tighter monetary policy. According to the CME FedWatch Tool, the likelihood of a 25-basis-point rate cut in November is 89.1%, with no expectation of a larger 50-basis-point cut. Federal Reserve Bank of Minneapolis President Neel Kashkari highlighted on Monday that the Fed is closely monitoring the US labor market for signs of rapid destabilization.…
Filed under: News - @ October 22, 2024 4:17 am