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The Indian Rupee trades in negative territory on Tuesday.  The local currency declines on the back of a firmer US Dollar and fears of disruption in US oil supply.  Investors will closely monitor Fed Chair Jerome Powell’s testimony on Tuesday.  The Indian Rupee (INR) weakens on Tuesday amid the recovery of the Greenback. The local currency loses traction as concerns about tropical storm Beryl disrupting US oil supply weigh on sentiment. However, the rising bets on a September rate cut by the US Federal Reserve (Fed) after US employment data on Friday signaled a cooling US labor market, which might undermine the US Dollar (USD).  The Fed Chairman Jerome Powell’s semi-annual monetary policy testimony to US lawmakers on Tuesday will be closely watched. This event “could be an opportunity for him to share whether the odds of a September rate cut have improved with the latest data”, said an ING Bank analyst. The dovish comments from Chair Powell might drag the Greenback lower and cap the upside for the pair.  Daily Digest Market Movers: Indian Rupee is sensitive to global headwinds India will likely peg its FY25 fiscal deficit target at 5.1% of GDP in the upcoming budget, according to Goldman Sachs. India’s employment growth rate stood at 6% in this fiscal year versus 3.2% in the previous fiscal year. The total additions to the workforce at 46.7 million were the highest since 1981-1982, the Reserve Bank of India (RBI) report showed on Monday. “Bids from state-run banks capped the rupee’s gains around 83.44, and they were also on offer near 83.48 in the second half (of the session),” said a foreign exchange trader at a foreign bank. According to the CME FedWatch tool, traders are now pricing in nearly 76% odds of a Fed rate cut in September, up…

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Filed under: News - @ July 9, 2024 3:18 am