Indian Rupee loses ground on Thursday on the firmer USD and the Fed governor’s hawkish comments.
The INR’s downside might be limited by the potential intervention from the Indian central bank.
The RBI is expected to hold rates steady in its April meeting amid strong economic growth and elevated inflation.
The Annualized US GDP (Q4) growth number will be released on Thursday.
Indian Rupee (INR) edges lower on Thursday amid the higher demand for the US Dollar (USD) from oil importers and the hawkish remarks from the Federal Reserve (Fed) officials. Furthermore, the ongoing weakening of Asian peers will continue to exert pressure on the INR. However, the downside of INR might be capped on the back of the Reserve Bank of India's (RBI) intervention in the foreign exchange market to help limit the depreciation in INR.
The Indian Central Bank released its monetary policy committee (MPC) schedule for the upcoming financial year 2024–25, starting from April 1, 2024. The first policy meeting will be held from April 3–5, and the RBI is anticipated to keep interest rates unchanged until at least July amid strong economic growth and elevated inflation. Moving on, investors await the release of the US Gross Domestic Product Annualized (Q4) on Thursday, which is estimated to grow at a steady pace at 3.2%. The US February Personal Consumption Expenditures Price Index (PCE) data will take center stage on Friday even though the markets are closed for Good Friday.
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