USD/INR POSTS MODEST GAINS, INVESTORS AWAIT FOMC AND RBI MEETING MINUTES
- Indian Rupee trades on a weaker note amid the rebound of USD.
- The RBI is anticipated to wait for the US Fed to take action before adjusting its monetary policy.
- The FOMC and RBI Meeting Minutes will be in the spotlight this week.
Indian Rupee (INR) weakens on Tuesday on the stronger US Dollar (USD). The INR is expected to trade with a modest positive bias, supported by carry trades and the speculation that the Reserve Bank of India (RBI) will ease monetary policy more slowly than the Fed. However, a continuation of debt-related dollar inflows, higher crude oil, and rising US bond yields might cap the upside of the pair in the near term.
Goldman Sachs expects two rate cuts in India in the second half of the year. If the economy is worse than forecast, the RBI may be forced to cut interest rates more quickly and deeply.
Traders will monitor the minutes of the Federal Open Market Committee's (FOMC) and RBI's latest monetary policy meetings, due later on Wednesday and Thursday, respectively
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