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Indian Rupee edges higher in Wednesday’s early Asian session. Lower crude oil prices and a weaker US Dollar support the INR, but MSCI-driven outflows might cap its upside.  Traders will closely monitor the FOMC Minutes, which will be released later on Wednesday. The Indian Rupee (INR) strengthens on Wednesday. Concerns over US trade and fiscal policies undermine the US Dollar (USD). Additionally, a decline in Crude oil prices provides some support to the Indian currency, as India is the world’s third-largest oil consumer.  Nonetheless, foreign outflows worth $900 million from Zomato due to MSCI index rebalancing, along with the expectations of interest rate cuts by the Reserve Bank of India (RBI), could weigh on the local currency.  The month-end US Dollar (USD) demand from local companies and foreign banks might also contribute to the INR’s downside.  Traders await the release of India’s April Industrial Output and Manufacturing Output, which are due later on Wednesday. On the US docket, the Minutes of the Federal Open Market Committee (FOMC) will be in the spotlight. Also, the Richmond Fed Manufacturing Index for May will be published.  Indian Rupee gains ground despite a decline in equities The local currency was expected to be in a range of 84.75 to 85.50, with an expectation of a Zomato outflow of $900 million due to the MSCI rebalancing, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.  The US Consumer Confidence Index climbed to 98.0 in May from 86.0 (revised from 85.7), according to the Conference Board on Tuesday.  US Durable Goods Orders declined by 6.3% in April, compared to a 7.6% increase in March (revised from 9.2%), the US Census Bureau showed on Tuesday. This figure came in above the market consensus of -7.9%. Federal Reserve (Fed) Bank of…

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Filed under: News - @ May 28, 2025 2:25 am