October 29, 2024
New Delhi, India
USDINR Today
INR Performance and Influences
The Indian Rupee (INR) softened on Tuesday, facing downward pressure from:
- Foreign Outflows: Significant withdrawals by foreign institutional investors (FIIs) from Indian equities and bonds, totaling $10 billion in October.
- US Bond Yields: Higher yields fueled by investor bets on Donald Trump’s potential return to the US presidency.
Crude Oil and RBI Support
Despite the challenges, two factors may limit the rupee’s depreciation:
- Crude Oil Prices: Recent declines in oil prices might ease the pressure on the INR.
- RBI Intervention: The Reserve Bank of India (RBI) is likely to intervene by selling USD through public sector banks, aiming to stabilize the currency.
Economic Outlook and Key Data
The Indian economy is projected to grow between 6.5% and 7.0% in FY24, though Nomura warns of a potential “cyclical growth slowdown.” Traders are closely watching upcoming US economic indicators, including:
- US Q3 GDP Annualized
- PCE Price Index (September)
- US Nonfarm Payrolls (NFP)
The CME FedWatch tool shows a 96.8% probability of a 25-basis-point Fed rate cut in November, with another anticipated in December.
Latest Q2 Results
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.