Indian Rupee maintains slight gains due to lower US yields and a decrease in the US Dollar. The Federal Open Market Committee (FOMC) decided to keep interest rates unchanged during their November meeting. The upcoming US Nonfarm Payrolls (NFP) report will be closely monitored. On Thursday, the Indian Rupee experienced modest gains as a result of lower US Treasury bond yields and a correction in the US Dollar. The FOMC kept the federal funds rate within the range of 5.25-5.50% in their November meeting on Wednesday, which was widely expected. However, despite Fed Chair Jerome Powell leaving open the possibility of another rate hike, the US Dollar weakened as the markets believe the US rate hike cycle may be over. Nonetheless, the Indian Rupee remains sensitive to global factors and risk sentiment. Increased tension in the Middle East and higher crude oil prices could lead to a risk-off environment and restrict the upside potential for the Indian Rupee. Investors will also be watching the US weekly Initial Jobless Claims for the week ending October 27 and the US Nonfarm Payrolls report.
