USD/INR appreciates as traders adopt caution ahead of Fed policy
The post USD/INR appreciates as traders adopt caution ahead of Fed policy appeared on BitcoinEthereumNews.com. Indian Rupee may regain its ground due to expected progress on a US-India trade agreement. USD/INR’s downside could be restrained due to importer hedging demand and potential RBI dollar-buying interventions. The INR may struggle due to improved crude oil prices, driven by OPEC+’s decision to ramp up production more quickly. The Indian Rupee (INR) edges lower against the US Dollar (USD) during the Asian hours on Tuesday. However, the USD/INR pair may continue to encounter resistance as the INR gains support from certain market factors. Investors are closely watching the Federal Reserve’s policy decision, along with any progress on a US-India trade agreement and ongoing cross-border tensions. The Indian Rupee drew support from strong equity inflows amounting to ₹2,769.81 crore. Furthermore, the recent launch of a new 10-year government bond with a 6.33% coupon saw solid demand and met market expectations. This favorable response may encourage additional foreign investment, further strengthening the Rupee. The downside for the USD/INR pair may be capped by importer hedging demand and potential dollar-buying interventions by the Reserve Bank of India (RBI). The central bank is expected to continue bolstering its foreign exchange reserves, which have risen for the eighth straight week, reaching a more than six-month high of $688 billion as of April 25. Additionally, the continued recovery in crude Oil prices puts downward pressure on the INR as India is the world’s third-largest Oil consumer. However, Oil gains were capped by concerns over rising global supply following an OPEC+ decision to accelerate output increases. Last week, OPEC+, the Organization of the Petroleum Exporting Countries and its allies, agreed to ramp up production for a second straight month, announcing an additional 411,000 barrels per day (bpd) increase for June. Indian Rupee advances as US Dollar appreciates ahead of Fed policy decision The US Dollar…
The post USD/INR appreciates as traders adopt caution ahead of Fed policy appeared on BitcoinEthereumNews.com.
Indian Rupee may regain its ground due to expected progress on a US-India trade agreement. USD/INR’s downside could be restrained due to importer hedging demand and potential RBI dollar-buying interventions. The INR may struggle due to improved crude oil prices, driven by OPEC+’s decision to ramp up production more quickly. The Indian Rupee (INR) edges lower against the US Dollar (USD) during the Asian hours on Tuesday. However, the USD/INR pair may continue to encounter resistance as the INR gains support from certain market factors. Investors are closely watching the Federal Reserve’s policy decision, along with any progress on a US-India trade agreement and ongoing cross-border tensions. The Indian Rupee drew support from strong equity inflows amounting to ₹2,769.81 crore. Furthermore, the recent launch of a new 10-year government bond with a 6.33% coupon saw solid demand and met market expectations. This favorable response may encourage additional foreign investment, further strengthening the Rupee. The downside for the USD/INR pair may be capped by importer hedging demand and potential dollar-buying interventions by the Reserve Bank of India (RBI). The central bank is expected to continue bolstering its foreign exchange reserves, which have risen for the eighth straight week, reaching a more than six-month high of $688 billion as of April 25. Additionally, the continued recovery in crude Oil prices puts downward pressure on the INR as India is the world’s third-largest Oil consumer. However, Oil gains were capped by concerns over rising global supply following an OPEC+ decision to accelerate output increases. Last week, OPEC+, the Organization of the Petroleum Exporting Countries and its allies, agreed to ramp up production for a second straight month, announcing an additional 411,000 barrels per day (bpd) increase for June. Indian Rupee advances as US Dollar appreciates ahead of Fed policy decision The US Dollar…
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