September 16, 2024
New Delhi, India
USDINR Today
The Indian Rupee (INR) traded on a weaker note during Monday’s early European session, despite a softer US Dollar (USD). The combination of declining crude oil prices, strong foreign institutional inflows (FII) into Indian stock markets, and firm bets on a potential Federal Reserve rate cut later this week could limit further downside for the INR.
Key Market Factors:
- Crude Oil Prices: The decline in crude oil prices could provide some support to the Rupee, as India heavily depends on oil imports.
- Foreign Inflows: Strong FII activity into Indian equities is another factor that might prevent significant depreciation of the INR.
- Federal Reserve Rate Expectations: Markets are closely watching the upcoming Fed meeting on Wednesday, with the possibility of a rate cut influencing global currencies. The odds of a 50 bps rate cut stand at 52%, according to the CME FedWatch tool.
However, consistent USD buying by Indian importers and risk aversion ahead of crucial economic data may weigh on the Rupee.
Upcoming Data Releases:
- Indian Trade Balance: Scheduled for release on Monday, the trade balance data will provide insights into India’s external economic position.
- US NY Empire State Manufacturing Index: Also due Monday, this data could impact market sentiment around USD and INR.
- Indian Wholesale Price Index (WPI) and US Retail Sales (August): Both reports are set to be released on Tuesday.
- Federal Reserve Interest Rate Decision: The key highlight of the week will be the Fed’s rate decision on Wednesday.
Market Snapshot:
- On Friday, the BSE Sensex closed 72 points lower (-0.1%), while the NSE Nifty dropped by 32 points (-0.1%).
- Top gainers included Bajaj Finserv, Axis Bank, and Wipro.
- The Reserve Bank of India (RBI) Governor Shaktikanta Das reaffirmed India’s growth outlook, predicting an expected growth rate of 7.5% with upside potential.
- The US University of Michigan Consumer Sentiment Index rose to 69.0 in September, surpassing the forecast of 68.0.
The Indian Rupee remains vulnerable to external factors like oil prices and USD movements, but strong domestic economic data and inflows could provide some stability.
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.
