December 10, 2024
New Delhi, India
USDINR Analysis
Rupee (INR) traded flat on Tuesday, stabilizing after reaching a record low in the previous session. Persistent strength in the US Dollar (USD), foreign fund outflows, and weak performance of Asian currencies continue to weigh on the INR.
The Reserve Bank of India’s (RBI) foreign exchange interventions are providing critical support, limiting further depreciation of the currency.
Upcoming Data and Market Sentiment
- US CPI in Focus: Investors are keenly watching the US Consumer Price Index (CPI) for November, due Wednesday, as it could influence the Federal Reserve’s interest rate decision next week. Current market odds show an 85.8% chance of a 25 basis points rate cut at the December 17-18 meeting, according to the CME FedWatch tool.
- India’s CPI Data: On Thursday, India will release its inflation figures, which will provide further insights into domestic economic conditions.
Fed’s Stance on Inflation
San Francisco Fed President Mary Daly emphasized the health of the US labor market and indicated that the Federal Reserve remains prepared to raise rates if inflationary pressures resurface.
Indian Economic Outlook
- The RBI recently revised its GDP growth forecast for the current fiscal year from 7.2% to 6.6%, reflecting a cautious outlook on the economy.
- India’s forex reserves rose by $1.51 billion, reaching $658.09 billion for the week ended November 29, offering some stability amid external headwinds.
The trajectory of the Indian Rupee will depend on global monetary developments and domestic economic data in the coming days.
As of writing this nws USDINR was hovering around 84.813 -0.021(-0.03%) as of 9:54 AM IST
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