September 26, 2024
New Delhi, India
USDINR Price
Rupee (INR) weakened during Thursday’s Asian session, losing momentum against the US Dollar (USD). Local sales of the USD by corporations and foreign inflows into Indian stocks and bonds initially supported the INR, along with a stronger Chinese Yuan. However, rising crude oil prices and a risk-averse market environment could weigh on the Rupee, limiting further gains.
Key Factors Affecting INR
- US Dollar Sales: USD sales from local importers and corporations have provided some relief to the Indian Rupee.
- Crude Oil Prices: The rise in global crude oil prices is a concern for India, a major oil importer. Higher crude prices typically hurt the INR as import costs rise.
- Fed Policy: Traders are closely watching the US Federal Reserve (Fed) speeches, particularly from Chair Jerome Powell, which could hint at future interest rate cuts. A potential 50 basis point rate cut in November could weaken the USD, providing some respite to the INR.
- US Economic Data: Investors will also monitor the US Q2 GDP Annualized data and the Personal Consumption Expenditures Price Index (PCE), both key indicators for the US economy. The PCE index, expected to show a 2.3% YoY rise for August, will be crucial in shaping Fed decisions.
Currency Market Today September 26, 2024: USDINR, EURINR, GBPINR, JPYINR Highlights
Outlook on Indian Economy
Despite recent fluctuations in the Rupee, India’s economy continues to grow. Reports from Moody’s Analytics and the Asian Development Bank (ADB) project India’s GDP to expand by 7.0% in FY 2025 and 7.2% in FY 2026. Moody’s also noted that India’s growth, though slowing, will still contribute significantly to the Asia-Pacific (APAC) region’s overall economic trajectory.
While the Rupee faces near-term pressure from crude oil prices and a cautious market, potential Fed rate cuts and continued foreign inflows into Indian assets could cap its downside. Investors will look to Thursday’s Fedspeak and US economic data for clearer direction.
USDINR was trading at 83.68 up +0.0900 or +0.11% at 11:33 IST today.
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