Indian Rupee remains quiet ahead of the FOMC meeting. The INR was lifted on Tuesday due to a pullback in US Treasury bond yields and lower oil prices. Traders will closely watch the FOMC’s interest rate decision. Despite the positive factors, the INR faces challenges such as equity outflows and geopolitical tensions in the Middle East. Investors will also monitor India’s Fiscal Deficit and Infrastructure Output data for September. The RBI’s intervention in bond sales and India’s foreign exchange reserves decline will also be monitored. Technical analysis suggests that the USD/INR pair remains confined within a range of 83.00-83.35. The USD has shown strength against major currencies in the past week. The Indian Rupee is influenced by external factors such as the price of crude oil, the value of the US Dollar, and foreign investment. The RBI actively intervenes in forex markets to maintain a stable exchange rate. Macroeconomic factors such as inflation, interest rates, economic growth, balance of trade, and foreign investment inflows also impact the Rupee’s value. Higher growth rates, less negative balance of trade, higher interest rates, and a risk-on environment are positive for the Rupee, while higher inflation is generally negative.
