November 21, 2024
New Delhi, India
USDINR Today
Rupee (INR) extended its decline on Thursday, weighed down by:
- Geopolitical Tensions: Heightened risks following Donald Trump’s US presidential victory.
- Portfolio Outflows: Foreign investors pulled $4 billion in November, adding to $11.5 billion withdrawn last month.
Central Bank Intervention
- The Reserve Bank of India (RBI) is expected to step in to prevent excessive depreciation by injecting USD into the market via state-run banks.
- The RBI predicts India’s GDP growth for Q3 to be 7.6%, compared to 6.7% in Q2, reflecting an improving economic outlook.
US Market Influences
Traders are closely watching:
- Upcoming US Data:
- Initial Jobless Claims
- Philadelphia Fed Manufacturing Index
- Existing Home Sales
- CB Leading Index
- Fed Commentary:
- Fed members Beth Hammack and Austan Goolsbee are set to speak, offering insights into the US monetary policy.
Broader Market Trends
- FedWatch Tool: Futures traders now see a 54% chance of a Fed rate cut, down from 80% last week, reflecting cautious sentiment.
- INR Performance:
- Depreciated 1.4% in FY24 and 1.5% so far in FY25, per RBI data.
Rupee faces continued headwinds from external pressures. However, potential RBI interventions and robust GDP growth projections could limit further losses. Traders should keep an eye on US economic data and geopolitical developments for market cues.
USDINR was trading around 84.448 up 0/11% by 11:58 AM IST today.
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