The post USD/INR softens ahead of RBI rate decision appeared on BitcoinEthereumNews.com.

The Indian Rupee gains traction in Wednesday’s Asian session.  Lower crude oil prices and potential RBI’s foreign exchange intervention support the INR.  Investors await the RBI interest rate decision on Wednesday ahead of FOMC Minutes.  The Indian Rupee (INR) gathers strength on Wednesday, bolstered by a decline in crude oil prices, stronger Asian currencies and likely foreign exchange intervention from the Reserve Bank of India (RBI). Nonetheless, outflows from local equities and renewed US Dollar (USD) demand might cap the upside for the local currency.  Investors will closely monitor the Reserve Bank of India (RBI) interest rate decision on Wednesday, which is likely to maintain its policy rate but might adopt a ‘neutral’ stance. On the US docket, the Federal Reserve’s (Fed) September meeting minutes will be in the spotlight.   Daily Digest Market Movers: Indian Rupee edges higher on likely RBI intervention “A rise in oil prices coinciding with dollar strength has increased inflation risks in India and put pressure on the rupee, such that the RBI has had to undertake significant FX intervention in recent days,” noted J.P. Morgan analysts on Tuesday. India’s foreign exchange reserves rose to a record-breaking $704.89 billion as of September 27, marking an increase of $12.5 billion, according to the RBI. Federal Reserve Vice Chair Philip Jefferson said on Tuesday that risks to the central bank’s employment and inflation goals are now closer to equal, per Bloomberg.  Boston Fed President Susan Collins noted on Tuesday that with inflation trends growing weaker, it is very probable that the Fed can deliver more interest rate cuts.  The markets have priced in nearly an 87% chance of 25 basis points (bps) Fed rate cuts in November, up from 31.1% last week, according to the CME FedWatch Tool. Technical Analysis: USD/INR’s positive outlook prevails The Indian Rupee trades…

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Filed under: News - @ October 9, 2024 5:13 am