Ella 
The Indian rupee (INR) weakened on Wednesday. Safe-haven inflows fueled the pair’s recovery as traders preferred to wait and see ahead of the Federal Open Market Committee’s (FOMC) interest rate decision.
India has attracted attention with its outstanding growth trajectory. India is expected to become a $7 trillion economy by 2030, Chief Economic Advisor V Anantha Nageswaran said. However, risks of stalemate inflation and rising oil prices amid geopolitical tensions in the Middle East could impact the Indian economy.
The Fed is widely expected to keep its benchmark interest rate unchanged at a 23-year high of 5.25-5.5% at its January meeting. Prospects for the Federal Reserve’s first rate cut at its March meeting have dimmed as the economy continues to show surprising strength. Markets have put an 85% chance of a rate cut at the May meeting, according to the CME FedWatch tool.
Later on Wednesday, the FOMC will announce an interest rate decision at 19:00 GMT (2:00 am Beijing time on Thursday), and Chairman Jerome Powell will announce its interest rate decision at 19:30 GMT (2:00 am Beijing time on Thursday). 30) Hold a press conference. Powell’s speech is likely to provide information on the central bank’s outlook and provide some hints about the timetable for rate cuts in 2024. Apart from this, India’s S&P Global Manufacturing PMI for January will be released on Thursday. All eyes will be on India’s Interim Budget 2024 (FY 2024-25).
