October 22, 2024
New Delhi, India
USDINR
The Indian Rupee (INR) remained stable against the US Dollar (USD) on Tuesday, supported by the potential for intervention from the Reserve Bank of India (RBI). This stability comes despite ongoing foreign outflows from Indian equities and global economic pressures, such as the dollar’s strength and rising US Treasury yields.
Rupee remained steady despite significant foreign outflows from Indian equities, with potential dollar sales by the Reserve Bank of India (RBI) playing a stabilizing role. In October alone, foreign institutional investors sold $10 billion worth of Indian stocks, as many shifted their focus to China, attracted by its recent stimulus measures and lower valuations. Meanwhile, Indian Prime Minister Narendra Modi attended the 16th BRICS Summit in Russia, where he is expected to meet with Chinese President Xi Jinping. On the global front, the US Dollar strengthened due to a rise in US Treasury yields, driven by concerns over inflation and economic resilience in the United States.
The RBI bulletin suggests that India’s aggregate demand will rebound in Q3, boosted by festive demand and rising consumer confidence. However, foreign institutional investor selling and global risk concerns, including the Middle East conflict, continue to weigh on risk-sensitive currencies like the INR.
Disclaimer:
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.
