Rupee’s Tug-of-War: Dollar Dominance vs RBI’s Defense

The Reserve Bank of India’s interventions to prop up the rupee are running into turbulence, with both local and global pressures testing its resolve. Friday’s 0.1% gain for the rupee—fueled by suspected central bank interventions and possible inflows—was a glimmer of hope. Early indicators from the 1-month non-deliverable forward suggest the rupee will open around 84.82-84.83 per dollar, a hair weaker than Friday’s close of 84.7875. This week, all eyes are on the Federal Reserve’s Wednesday meeting. A quarter-point rate cut seems locked in, but the focus will be on the Fed’s tone for 2025. The rupee’s immediate future looks like a wrestling match between RBI’s defense and a rising U.S. dollar, with inflation and Fed signals playing referee.

Proudly powered by WordPress | Theme : News Elementor by BlazeThemes