October 15, 2024
New Delhi, India
USDINR
The Indian Rupee (INR) edged lower against the US Dollar (USD) on Tuesday, influenced by global risk aversion. However, potential foreign fund inflows and falling oil prices may lend support to the INR, as traders eye gains in Asian markets and Wall Street’s record close.
Key Factors Influencing INR:
- Foreign Fund Inflows: Anticipated inflows could boost the Rupee, especially as Indian stocks are expected to track the upward trend seen in Asian markets.
- Oil Prices: The decline in crude oil prices, driven by reports of Israel avoiding Iranian oil facilities, could ease India’s import costs, potentially strengthening the Rupee.
Market Overview:
- USD/INR: The pair remains near 84.00, with the Dollar gaining due to a reduced likelihood of aggressive rate cuts by the US Federal Reserve.
- CPI Increase: India’s Consumer Price Index (CPI) surged to 5.49% YoY in September, exceeding market expectations and the Reserve Bank of India’s 4% target.
- Foreign Investment: The Rupee faced pressure as foreign investors sold ₹37.32 billion worth of stocks on Monday, marking the 11th straight session of net selling.
Amid heightened tensions in the Middle East, the risk-sensitive INR could face volatility, though easing oil prices may offer some relief.
Disclaimer:
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