Indian Rupee – Update

Advisory Bazaar Info Services

🔹 After gaining 0.35% on Tuesday, the Indian rupee is expected to trade in the 95.30–95.80 range against the US dollar today.

🔹 Falling crude oil prices and intervention by the Reserve Bank of India (RBI) are supporting the rupee. However, expectations of a US Federal Reserve rate hike and strong dollar demand continue to weigh on the currency.

🔹 The USD/INR trading range is seen at 95.00–95.80, with RBI intervention likely to limit movement above the 95.60–95.80 levels.

🔹 Brent crude prices have declined and are currently trading around $87.30 per barrel.

🔹 Strong dollar demand from importers may keep USD/INR supported at higher levels, limiting further gains in the rupee.

🔹 The Dollar Index remains near an eight-day high amid growing expectations of a Fed rate hike following the latest inflation data.

🔹 Market participants are closely watching the upcoming speech by the Federal Reserve Chair for further guidance on the future direction of interest-rate policy.

Outlook: Despite support from lower crude prices and RBI intervention, strong dollar demand and expectations of tighter Fed policy may keep the rupee under pressure.