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Daily Digest Market Movers: Indian Rupee rebounds amid Indian foreign inflows and lower crude oil prices

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  • The Indian Rupee is expected to trade with a slight bearish bias on weakness in the domestic market and a positive tone in the US Dollar, said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas. 
  • The Fed Chair Jerome Powell responded to questions before the House Financial Services Committee on Wednesday, saying that the Fed will make interest rate decisions based on the data, the incoming data, the evolving outlook, and the balance of risks, and not in consideration of political factors. 
  • Powell further stated that it would not be appropriate to cut the policy rate until they gain greater confidence in inflation heading sustainably towards the Fed’s 2% target. 
  • Fed Governor Lisa Cook said on Thursday that US inflation should continue to fall without a significant further rise in the Unemployment Rate, per Reuters.
  • The probability of the Fed leaving the policy rate unchanged in September stood at nearly 25% following this event, according to the CME FedWatch Tool.
  • The US CPI is projected to show an increase of 3.1% YoY in June, while core inflation is projected to remain steady at 3.4% YoY. 


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