The
Indian
Rupee
(INR)
trades
on
a
weaker
note
on
Wednesday
amid
the
modest
rebound
of
the
US
Dollar
(USD).
The
persistent
Greenback
demand
from
local
importers
might
continue
to
limit
the
local
currency’s
gains.
However,
sustained
Indian
foreign
inflows,
a
positive
economic
outlook,
and
the
fastest
macroeconomic
growth
among
large
economies
might
all
contribute
to
the
INR’s
upside.
Traders
will
focus
on
the
second
semi-annual
testimony
by
Federal
Reserve
(Fed)
Chair
Jerome
Powell
on
Wednesday.
The
attention
will
shift
to
the
US
Consumer
Price
Index
(CPI)
inflation
data
on
Thursday.
The
US
CPI
is
projected
to
show
an
increase
of
3.1%
YoY
in
June,
while
core
inflation
is
projected
to
remain
steady
at
3.4%
YoY.
Any
dovish
comments
from
the
Fed’s
Powell
or
signs
of
softer
inflation
in
the
US
might
exert
some
selling
pressure
on
the
Greenback.
The
Indian
Rupee
trades
softer
on
the
day.
The
bullish
bias
of
the
USD/INR
pair
continues
as
the
pair
holds
above
the
key
100-day
Exponential
Moving
Average
(EMA)
on
the
daily
chart.
In
the
shorter
term,
further
consolidation
looks
favorable
as
the
pair
has
remained
stuck
within
a
familiar
trading
range
since
March
21.
Additionally,
the
14-day
Relative
Strength
Index
(RSI)
showed
neutral
momentum,
hovering
around
the
50-midline.
Sustained
upside
momentum
could
lift
USD/INR
to
83.65,
the
upper
boundary
of
the
trading
range.
A
break
above
this
level
could
attract
some
buying
interest
to
the
all-time
high
of
83.75
en
route
to
the
84.00
psychological
barrier.
On
the
flip
side,
the
100-day
EMA
at
83.36
acts
as
an
initial
support
level
for
the
pair.
Extended
losses
will
expose
the
83.00
round
mark,
followed
by
82.82,
a
low
of
January
12.
The
table
below
shows
the
percentage
change
of
US
Dollar
(USD)
against
listed
major
currencies
today.
US
Dollar
was
the
strongest
against
the
New
Zealand
Dollar.
USD |
EUR |
GBP |
CAD |
AUD |
JPY |
NZD |
CHF |
|
USD |
0.00% | -0.01% | 0.02% | 0.04% | 0.12% | 0.42% | 0.04% | |
EUR |
0.00% | -0.01% | 0.01% | 0.05% | 0.11% | 0.41% | 0.04% | |
GBP |
-0.01% | 0.00% | 0.02% | 0.05% | 0.12% | 0.43% | 0.05% | |
CAD |
-0.02% | -0.01% | -0.01% | 0.03% | 0.11% | 0.48% | 0.03% | |
AUD |
-0.04% | -0.06% | -0.05% | -0.04% | 0.08% | 0.38% | 0.00% | |
JPY |
-0.12% | -0.10% | -0.11% | -0.10% | -0.04% | 0.31% | -0.07% | |
NZD |
-0.42% | -0.42% | -0.43% | -0.41% | -0.38% | -0.31% | -0.38% | |
CHF |
-0.05% | -0.04% | -0.05% | -0.03% | 0.00% | 0.07% | 0.38% |
The
heat
map
shows
percentage
changes
of
major
currencies
against
each
other.
The
base
currency
is
picked
from
the
left
column,
while
the
quote
currency
is
picked
from
the
top
row.
For
example,
if
you
pick
the
Euro
from
the
left
column
and
move
along
the
horizontal
line
to
the
Japanese
Yen,
the
percentage
change
displayed
in
the
box
will
represent
EUR
(base)/JPY
(quote).
The
Indian
Rupee
(INR)
is
one
of
the
most
sensitive
currencies
to
external
factors.
The
price
of
Crude
Oil
(the
country
is
highly
dependent
on
imported
Oil),
the
value
of
the
US
Dollar
–
most
trade
is
conducted
in
USD
–
and
the
level
of
foreign
investment,
are
all
influential.
Direct
intervention
by
the
Reserve
Bank
of
India
(RBI)
in
FX
markets
to
keep
the
exchange
rate
stable,
as
well
as
the
level
of
interest
rates
set
by
the
RBI,
are
further
major
influencing
factors
on
the
Rupee.
The
Reserve
Bank
of
India
(RBI)
actively
intervenes
in
forex
markets
to
maintain
a
stable
exchange
rate,
to
help
facilitate
trade.
In
addition,
the
RBI
tries
to
maintain
the
inflation
rate
at
its
4%
target
by
adjusting
interest
rates.
Higher
interest
rates
usually
strengthen
the
Rupee.
This
is
due
to
the
role
of
the
‘carry
trade’
in
which
investors
borrow
in
countries
with
lower
interest
rates
so
as
to
place
their
money
in
countries’
offering
relatively
higher
interest
rates
and
profit
from
the
difference.
Macroeconomic
factors
that
influence
the
value
of
the
Rupee
include
inflation,
interest
rates,
the
economic
growth
rate
(GDP),
the
balance
of
trade,
and
inflows
from
foreign
investment.
A
higher
growth
rate
can
lead
to
more
overseas
investment,
pushing
up
demand
for
the
Rupee.
A
less
negative
balance
of
trade
will
eventually
lead
to
a
stronger
Rupee.
Higher
interest
rates,
especially
real
rates
(interest
rates
less
inflation)
are
also
positive
for
the
Rupee.
A
risk-on
environment
can
lead
to
greater
inflows
of
Foreign
Direct
and
Indirect
Investment
(FDI
and
FII),
which
also
benefit
the
Rupee.
Higher
inflation,
particularly,
if
it
is
comparatively
higher
than
India’s
peers,
is
generally
negative
for
the
currency
as
it
reflects
devaluation
through
oversupply.
Inflation
also
increases
the
cost
of
exports,
leading
to
more
Rupees
being
sold
to
purchase
foreign
imports,
which
is
Rupee-negative.
At
the
same
time,
higher
inflation
usually
leads
to
the
Reserve
Bank
of
India
(RBI)
raising
interest
rates
and
this
can
be
positive
for
the
Rupee,
due
to
increased
demand
from
international
investors.
The
opposite
effect
is
true
of
lower
inflation.
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