Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Rupee strengthens on US CPI data, Fed rate cut expectations

EditorAmbhini Aishwarya
Published 11/16/2023, 01:44 AM
© Reuters.
INR
-

The Indian Rupee has seen an ascent against the dollar, driven by softening US currency in response to a decrease in the United States' key Consumer Price Index (CPI) figures. This development has sparked speculation among investors about a potential Federal Reserve interest rate cut by May next year.

ICICI Direct observed on Wednesday that the Rupee's rise comes amid a broader dollar correction, as declining US CPI and Producer Price Index (PPI) numbers suggest an approaching end to the Federal Reserve's cycle of interest rate hikes. The weakening of crude oil prices, coupled with the increasing likelihood of a Fed rate cut in May, has added pressure on the dollar.

Market analysts anticipate that if the USD/INR exchange rate sustains below 83.30, it could reverse towards 83.00, and possibly further down to 82.80. This outlook is based on the recent economic indicators that are influencing currency valuations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.