Ahead of the Reserve Bank of India’s (RBI) announcement on policy, the Indian rupee started at 82.81 against the US dollar showing a change from its previous closing rate of 82.82.
Given the concerns about inflation, experts in the market believe that the RBI is likely to maintain its repo rates at 6.5%. However, stakeholders are eagerly awaiting the RBIs policy statement to gain insights into monetary adjustments and how they may impact the value of the rupee.
On a scale, the US dollar index, which measures the strength of the dollar against six major currencies, remained relatively stable at 102.50. Now all attention is focused on US inflation data as it could influence policies set by the Federal Reserve.
ICICI Direct commented on this situation and mentioned that with expectations of a weakening dollar due to the forthcoming US inflation data release, there is a possibility for an appreciation in the value of the rupee. Investors are speculating whether or not interest rates will remain unchanged during the RBIs monetary policy decision-making process; however, they will closely observe any indications or remarks made by RBI regarding rate adjustments.
According to predictions from this institution, USDINR might face resistance of around 82.95. It could potentially retract back to around 82.65 level. The economic uncertainties caused a drop in crude oil prices. Brent crude experienced a decrease of 0.2%, reaching $87.35 per barrel, while West Texas Intermediate (WTI) showed a decline of 0.3% with a price of $84.17.