March 27, 2024
New Delhi, India
USDINR
The Indian Rupee (INR) fell on Thursday, pressured by strong month-end US Dollar (USD) demand from importers and higher crude oil prices. Concerns over US tariff policies also added to market jitters.
Key Factors Driving INR
USD Demand Weighs on INR: Importers’ end-of-month dollar buying puts pressure on the rupee.
Crude Oil Surge: Higher prices hurt India’s trade balance, as it is a major oil importer.
Foreign Inflows Provide Relief: Investors have purchased over $2 billion in Indian equities in four days, with bond inflows exceeding $3 billion this month.
RBI May Intervene: The Reserve Bank of India (RBI) is expected to stabilize excessive INR volatility if needed.
Global Market Developments
Trump’s Auto Tariffs: A 25% tariff on US auto imports will be implemented on April 2, with a one-month reprieve for auto parts.
US Economic Data:
Durable Goods Orders increased 0.9% in February, exceeding forecasts.
US Q4 GDP, Jobless Claims, and Pending Home Sales reports due later today.
Market Outlook
While USD strength and oil prices remain key concerns, foreign inflows and RBI intervention could limit further INR losses. Markets now await US economic data for additional cues.
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.
