On October 4th, the Indian rupee remained relatively stable against the US dollar in anticipation of the monthly policy meeting of the Reserve Bank of India (RBI) later this week. At 9:10 a.m., the Indian currency was trading at 83.23 against the US dollar, showing a decrease of 0.02 percent compared to its closing rate of 83.21.
It is expected that the RBI’s Monetary Policy Committee (MPC) will maintain the status on October 6th, making it the fourth consecutive policy meeting where key interest rates are left untouched by the bank.
CR Forex reports that currently, there is resistance, around the 83.30 level for the USD/INR pair on its way and support around 82.80 on its way down. This has resulted in a range-bound pattern for this currency pair.
CR Forex further mentions that if either of these levels is breached, it could lead to a movement of approximately 80 to 90 paise in either direction.
Markets, investors, and businesses have closely monitored the RBI’s policy decisions as they seek insights into the bank’s stance on policy and its evaluation of India’s economic well-being. The bank’s upcoming choice to keep the existing interest rate, commonly known as a “rate pause ” showcases their perspective on managing growth and controlling inflation.
As the RBI’s policy meeting draws near, market participants will be attentively observing any updates and declarations from the bank that might impact currency markets and prices of assets in the upcoming days.