December 6, 2024
New Delhi, India
USDINR Analysis
Rupee (INR) held steady on Friday, recovering from its all-time low in the previous session. Domestic market strength and falling crude oil prices lent support to the local currency, though renewed US Dollar (USD) demand amid a cautious global mood could limit further gains.
RBI Rate Decision in Focus
The Reserve Bank of India (RBI) Governor Shaktikanta Das is set to announce the central bank’s fifth monetary policy for FY2024-25. Economists at Nomura anticipate a potential 25-basis-point rate cut, citing weaker growth and a benign inflation outlook, though this view remains out of consensus. Meanwhile, the RBI’s foreign reserves have declined significantly, falling from $705 billion to $656.58 billion as of November 22, highlighting efforts to stabilize the Rupee.
US Economic Indicators and Fed Commentary
In the US, labor market data will dominate the day. Weekly Initial Jobless Claims rose to 224,000, exceeding expectations of 215,000, while Continuing Claims declined by 23,000 to 1.871 million. Later in the day, Federal Reserve officials Michelle Bowman and Austan Goolsbee are expected to provide insights on the Fed’s monetary policy outlook.
Market participants are also eyeing US Nonfarm Payrolls (NFP) data, which could influence the USD’s trajectory.
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