The USD/INR pair is holding steady as traders anticipate market interventions by the RBI to keep the INR from weakening beyond 84.00. The upcoming release of Consumer Price Index and Industrial Output data from India is also being closely watched.
Lower crude oil prices are providing support for the Indian Rupee against the USD, benefiting India as a major oil importer. Despite concerns over weakened oil demand, the impact of Hurricane Francine on US oil production has been offsetting.
Foreign inflows into Indian equities are expected to increase following the US CPI data, which raises the likelihood of a 25-basis points rate cut by the Fed in September.
Daily Digest Market Movers: Indian Rupee consolidates amid thin volatility
- India may relax investment rules for Chinese firms to boost manufacturing.
- US CPI dipped to 2.5% YoY in August, below expectations.
- Harris won the first US presidential debate with a focus on the economy.
- Investors are urging the Indian government to increase bond issuances.
- Chicago Fed President Goolsbee’s comments suggest an imminent rate adjustment.
- India’s FX Reserves hit a record high due to foreign exchange influx.
Technical Analysis: USD/INR remains below 84.00, tests upper boundary of the symmetrical triangle
The USD/INR pair is consolidating within a symmetrical triangle pattern, with the RSI above 50 indicating a bullish trend. Immediate support is at 83.93, while a breakout above 84.00 could push the pair higher.
USD/INR: Daily Chart
