Indian Rupee loses ground despite the weaker US Dollar (USD).
RBI kept the key repo rate steady at 6.5%, signaling the battle against persistently high inflation is not over yet.
The US GDP growth numbers for Q4 will be in the spotlight next week.
Indian Rupee (INR) edges lower on Friday despite the decline of the US Dollar (USD). The minutes of the Federal Reserve (Fed) at its January meeting, along with a weaker-than-expected bond auction, pushed US Treasury yields higher and weighed on the INR.
According to the minutes of the Reserve Bank of India (RBI) MPC meeting, RBI governor Shaktikanta Das said any premature move may undermine the success achieved so far. RBI’s Das added that the central bank remained cautious about inflation data due to uncertainty in food prices, rising geopolitical tensions, and supply chain disruptions, as a new flash point also poses further risks to the inflation outlook.
In the absence of top-tier economic data released this week from the US and India, risk sentiment could influence the price action of USD/INR. The attention will shift to the US Gross Domestic Product Annualized (GDP) for the fourth quarter next week for fresh impetus
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