USD/INR stages a modest recovery, focus on RBI’s OMO
Notícias do Bitcoin Ethereum Indian Rupee edges lower on Monday on the ongoing US Dollar (USD) demand. A lower US Treasury bond yields and RBI‘s potential intervention might limit the INR’s downside. Investors will focus on the Federal Open Market Committee (FOMC) meeting and RBIs OMO sales. Indian Rupee (INR) opens modestly lower on Monday on the ongoing US Dollar (USD) demand and equity-linked outflows. That being said, foreign investors have sold $1.19 billion in Indian equities in October. Nonetheless, a pullback in the US Treasury bond yields and the potential intervention from the Reserve Bank of India (RBI) might cap the further depreciation of INR. Investors will closely monitor the Federal Open Market Committee‘s (FOMC) interest rate decision at the end of its two-day meeting on Wednesday. The markets anticipate the FOMC to maintain rates steady, despite the Fed’s preferred gauge for inflation, the Core Personal Consumption Expenditures Price Index (PCE) remains well above the 2% target rate. Furthermore, market participants will keep an eye on whether the RBI starts selling bonds via open market operations (OMO) this week as liquidity improves. Apart from this, Indias Fiscal Deficit and Infrastructure Output for September will be released on Tuesday. Daily Digest Market Movers: Indian Rupee struggles to