The Indian Rupee (INR) displayed a lackluster performance during the Asian trading session, oscillating between slight gains and minor losses as it seeks a clear intraday direction. The INR is currently consolidating in a narrow range just above its highest level against the US Dollar (USD) in over a month, achieved the previous day.
Market sentiment is shaped by expectations of a possible 50 basis points interest rate cut by the Federal Reserve (Fed) in November, following the commencement of its policy easing last week. This prospect has limited the recent bounce of the USD from its year-to-date low, providing some support for the local currency.
Despite this supportive backdrop, INR bulls appear cautious, preferring to await further signals regarding the Fed’s rate-cut trajectory before committing to new positions. Attention is keenly focused on upcoming speeches from key members of the Federal Open Market Committee (FOMC) this week. Additionally, the release of the US Personal Consumption Expenditures (PCE) Price Index on Friday will be pivotal in influencing USD demand in the near term and could determine the next directional move for the USD/INR pair.
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