October 25, 2024
New Delhi, India
USDINR Today
The Indian Rupee (INR) holds steady against the US Dollar (USD) in the 84.00–84.10 range on Friday, supported by RBI interventions despite ongoing foreign outflows.
Key Market Drivers:
- Foreign Outflows: Foreign Institutional Investors (FIIs) continued selling Indian equities for a 19th consecutive session due to China’s recent stimulus and attractive valuations, pressuring the INR.
- RBI Strategy: Potential Reserve Bank of India (RBI) interventions helped curb further rupee declines. RBI Deputy Governor Michael Patra emphasized strengthening India’s macroeconomic fundamentals and building forex reserves, now covering nearly 12 months of imports.
- USD Strength: The US Dollar is strengthened by anticipation of a less aggressive Federal Reserve rate cut (97% probability of a 25-basis-point cut in November per CME FedWatch Tool). Additionally, speculation of a potential second term for Donald Trump has fueled support for the USD amid expected inflationary policies.
Additional Insights:
- Indian Equities: Both Nifty 50 and BSE Sensex are set for a fourth consecutive weekly loss due to sustained FII selling.
- PM Modi and President Xi Talks: In recent discussions at the BRICS summit, India and China agreed to improve communication and resolve past conflicts.
The Indian Rupee’s resilience reflects strategic RBI actions amidst foreign outflows and a strong USD, while US economic indicators like PMI and Fed policy add to market influences.
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