March 28, 2024
New Delhi, India
USDINR
The Indian Rupee (INR) rose on Friday, supported by foreign equity inflows and strong domestic markets. However, month-end US Dollar (USD) demand and rising crude oil prices limited further gains.
Key Factors Driving INR
Foreign Inflows Boost INR: Renewed investor interest in Indian equities supports the currency.
USD Demand Caps Upside: Importers’ end-of-month dollar buying weighs on INR.
Crude Oil Concerns: Rising prices pressure India’s trade balance, affecting INR stability.
US Tariffs in Focus: Trump’s 25% auto import tariff from April 2 may strengthen USD, impacting INR.
Global Market Developments
US PCE Inflation Data Ahead: Key inflation report could shape expectations for future Fed rate cuts.
Indian Economy Outlook: The Department of Economic Affairs (DEA) projects 6.5% GDP growth in FY25 despite external risks.
US GDP Growth Revised Higher: The US economy expanded 2.4% in Q4 2024, slightly above prior estimates.
Market Outlook
While foreign inflows support INR, USD strength and oil prices remain key risks. Markets now await US PCE inflation data for further rate-cut clues.
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