As the Asian session kicks off on Friday, the Indian Rupee (INR) is trading on a stronger note. The current market sentiment is being influenced by the anticipation of a deeper rate cut by the US Federal Reserve (Fed) in September. This expectation is causing the US Dollar (USD) to weaken, thereby supporting the INR. Additionally, the Reserve Bank of India (RBI) may intervene to prevent the local currency from depreciating further.
However, factors such as higher crude oil prices, weakness in other Asian currencies, and foreign outflows from India could put pressure on the INR. Despite the lack of major data releases from both India and the US on Friday, traders will closely monitor risk sentiment and the dynamics of the USD.
Daily Digest Market Movers: Indian Rupee Strengthens with Limited Upside Potential
- The RBI’s Monetary Policy Committee (MPC) voted to maintain policy rates unchanged and continue with the ‘Withdrawal of Accommodation’ stance.
- The RBI retains its GDP growth projection for FY25 at 7.2% with balanced risks and keeps the CPI inflation forecast for FY25 at 4.5%.
- RBI Governor Shaktikanta Das highlights the gradual decline in global inflation and the challenges to medium-term growth, with a focus on food prices.
- Concerns about a US recession are premature, but the RBI remains vigilant about incoming data.
- The number of new US unemployment benefit applications saw a slight increase, affecting market expectations of a September rate cut.
Technical Analysis: Positive Outlook for USD/INR
The USD/INR pair maintains a bullish stance, supported by its position above the 100-day EMA and an uptrend line since June. The RSI indicator suggests ongoing bullish momentum, with a target of 84.00 and potential for further gains towards 84.50. However, a downside break below 83.80 could lead to a retreat to the 100-day EMA at 83.51.
US Dollar Price Today
The table below shows the percentage change of the US Dollar (USD) against major currencies, with the USD weakening against the New Zealand Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.07% | -0.09% | -0.05% | -0.08% | -0.18% | -0.37% | -0.07% | |
| EUR | 0.07% | -0.02% | 0.02% | -0.01% | -0.09% | -0.29% | 0.01% | |
| GBP | 0.09% | 0.01% | 0.03% | 0.00% | -0.07% | -0.29% | 0.03% | |
| CAD | 0.06% | -0.01% | -0.04% | -0.02% | -0.09% | -0.30% | 0.00% | |
| AUD | 0.08% | 0.00% | -0.01% | 0.03% | -0.10% | -0.30% | 0.01% | |
| JPY | 0.17% | 0.09% | 0.08% | 0.10% | 0.08% | -0.19% | 0.12% | |
| NZD | 0.38% | 0.30% | 0.28% | 0.33% | 0.30% | 0.20% | 0.31% | |
| CHF | 0.06% | -0.02% | -0.04% | 0.00% | -0.03% | -0.12% | -0.31% |
The Indian Rupee (INR) is influenced by various factors such as global inflation, interest rates, and economic growth. Understanding these factors can help individuals make informed decisions about their finances and investments. Stay updated on market trends and news to navigate the financial landscape effectively.