March 10, 2024
New Delhi, India
USDINR
Rupee (INR) trades with a negative bias on Monday, weighed down by persistent foreign investor outflows, economic uncertainty, and trade tariff concerns. Foreign Portfolio Investors (FPIs) have pulled nearly $15 billion from Indian shares this year, approaching the record $17 billion outflows of 2022, erasing $1.3 trillion in market value.
Key Market Drivers:
FPI Outflows & Market Volatility:
- Heavy selling pressure on Indian equities continues, pressuring the INR.
RBI & Government Intervention:
- RBI to infuse $21 billion in Rupee liquidity to ease lending and support growth.
- Government remains confident in RBI’s ability to control currency depreciation.
Crude Oil Impact:
- Lower oil prices offer some relief as India is a major importer.
US Data & Fed Commentary:
- Nonfarm Payrolls (NFP) rose by 151K in February (below 160K expected).
- US Unemployment Rate edged up to 4.1% from 4.0%.
- Average Hourly Earnings climbed to 4.0% from 3.9%.
- Fed remains cautious about policy adjustments amid economic uncertainty.
Market Outlook:
With no major economic data from India or the US on Monday, USD/INR movement will depend on global sentiment, RBI actions, and further FPI flows.
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.
