USD/INR strengthens ahead of India CPI, US PPI releases

The Indian rupee (INR) lost traction on Friday amid a modest recovery in the US dollar (USD). Demand for USD from state-owned banks and local importers limited the potential gains for the INR. Moreover, the rebound in crude oil prices also exerted some selling pressure on the rupee as India is the world’s third-largest crude oil consumer after the US and China.

On the other hand, positive trends in the Indian stock market, continued foreign capital inflows, and strong macroeconomic growth in India are likely to support the INR. Moreover, growing expectations of a September rate cut by the US Federal Reserve (Fed) following weak US inflation data are likely to weigh on the US dollar and limit upside for USD/INR in the near term.

Later on Friday, investors will be keeping a close eye on the Indian Consumer Price Index (CPI) data, which is expected to show a 4.8% increase in the Indian CPI in June. Also, data on industrial production and manufacturing output will be released. On the US side, the US Producer Price Index (PPI) for June and the preliminary reading of the Michigan Consumer Sentiment Index for July will be released.

USD latest articles

Popular exchange rates

foreign exchange

fxcurrencyconverter is a forex portal. The main columns are exchange rate, knowledge, news, currency and so on.

© 2023 Copyright fxcurrencyconverter.com