Pressure on Indian Rupee Amid Fed Rate Cut Expectations; Markets Await Future Clarity
-
The Indian rupee came under pressure due to expectations of a U.S. Federal Reserve rate cut and concerns over trade tariffs.
-
The anticipated Fed rate cut has left markets waiting for signals from the key policymaker.
-
Despite hitting a new low at 88.4550 against the U.S. dollar, interventions by the Reserve Bank of India have helped limit further losses.
Implications for Forex Traders:
-
The USD/INR pair may experience high volatility during this period.
-
If the Fed delivers a dovish statement, the rupee could see some relief and modest strengthening.
-
Traders should closely monitor U.S. economic indicators, tariff-related news, and RBI’s interventions.
