Indian Rupee (INR) loses ground on Wednesday despite the weaker US Dollar.
The ongoing India inflows might support the INR, while higher crude oil prices could limit its gains.
The Indian HSBC PMI and US S&P Global PMI reports will be the highlights on Friday.
The Indian Rupee (INR) edges lower on Wednesday despite the softer Greenback. The local currency strengthened on Tuesday, supported by US Dollar (USD) sales by state-run banks and likely foreign inflows in Indian bonds and equities. Analysts expect India’s upcoming inclusion in the JPMorgan emerging market debt index could boost the Indian Rupee in the near term.
Additionally, the weaker-than-expected US Retail Sales report spurred the likelihood that the Federal Reserve (Fed) will start to cut interest rates in a few months, which might weigh on the Greenback. However, the rise of crude oil prices to two-month highs might also cap the upside of the INR as India is the third largest consumer of Oil behind the US and China.
The Indian and US economic docket will be empty on Wednesday. Investors await the Indian HSBC Manufacturing and Services PMI on Friday for fresh impetus, along with the Reserve Bank of India (RBI) Meeting Minutes. On the US front, the S&P Global PMI reports will be released at the end of the week.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.