The Indian Rupee remains stable amid rising speculation of RBI interventions in open FX markets.
Lower crude Oil prices favor the INR as India is the world’s third-largest Oil consumer and importer.
The US Dollar depreciates as the Treasury yields continue to decline ahead of the Consumer Price Index data.
The USD/INR pair remains confined in a range around 84.00 level on Wednesday. Traders speculate potential interventions by the Reserve Bank of India (RBI) in the open FX market to support the Indian Rupee (INR) and prevent it from weakening beyond the 84.00 level.
The Indian Rupee gained support against the US Dollar (USD) due to falling crude Oil prices. This could alleviate downward pressure on the INR, as India, the world’s third-largest Oil consumer and importer, stands to benefit from lower import costs. Concerns about weakening global demand led Brent crude futures to drop to their lowest level of $64.75 per barrel since December 2021.
The US Dollar (USD) faces challenges as the US Treasury yields continue to decline ahead of the US Consumer Price Index (CPI) data scheduled to be released later in the North American hours. This inflation report may offer fresh cues regarding the potential magnitude of the Federal Reserve's (Fed) interest rate cut in September.
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