Home›Forex›Major Pairs›Rupee holds steady near 95.33 as RBI policy focus shif…

Rupee holds steady near 95.33 as RBI policy focus shifts

Investors are also weighing oil price moves linked to US-Iran talks, which can affect oil-import dependent currencies like India.

Reported · Written up by our desk · Major Pairs

The Indian rupee was little changed in early trading, holding around 95.33 per US dollar, as attention turned to the Reserve Bank of India’s upcoming monetary policy decision on Wednesday. FXStreet said the currency was expected to trade sideways while markets assessed whether the RBI would keep its current stance. Commerzbank analysts noted the central bank is expected to leave the benchmark repurchase rate unchanged at 5.25% at its next meeting on 5 August, pointing to June CPI that rose 4.4% year over year, within the RBI’s 2% to 6% target range.

The same outlook cited inflation risks that remain tilted upward, including pressure from higher global commodity prices and concerns over the monsoon. FXStreet also tied near-term rupee dynamics to crude oil, noting oil prices were bid on Tuesday amid continued market concerns around the outcome of US and Iran talks, after earlier weekend headlines around the Strait of Hormuz helped pull oil lower.

In parallel, FXStreet said the US dollar was steady after a Monday rebound, with traders awaiting US JOLTS job openings data for June and later the July nonfarm payrolls release. The US Dollar Index was around 100.0 at the time of writing, according to the outlet.

Latest closeWTI crude $80.00 ▼5.5%|Dollar index 99.99 ▲0.2%

More like this

Sources