February 17, 2025
New Delhi, India
USDINR
The Indian Rupee (INR) traded lower on Monday, snapping a two-day winning streak due to sluggish domestic growth, foreign outflows, and the Reserve Bank of India’s (RBI) rate cuts.
Key Factors Affecting the Rupee:
Economic Slowdown:
India’s Wholesale Price Index (WPI) inflation fell to 2.31% in January from 2.37% in December, below the expected 2.50%.FII Outflows:
Foreign Institutional Investors (FIIs) continue their selling spree, adding pressure on the rupee.RBI’s Dovish Stance:
Recent rate cuts by the RBI have dampened the currency’s appeal.
Possible Relief for INR:
RBI’s USD Intervention:
The RBI’s strategy to sell dollars may curb excessive depreciation.Crude Oil Prices:
Lower oil prices offer support, as India is a major importer of crude.
Global Impact:
US Retail Sales fell 0.9% in January, while Industrial Production rose 0.5%, beating estimates.
US President Donald Trump recently announced that Prime Minister Modi is open to tariff talks to boost US oil imports and reduce the trade deficit.
Outlook:
Markets await India’s trade balance data and US Fed officials’ speeches for further cues, while the rupee’s trajectory will hinge on global trade developments and RBI’s intervention intensity.
Check Latest Market News
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.
