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Indian Rupee lost ground during the Diwali Balipratipada holiday in India. Inflation in India eased in October, coming closer to the central bank’s target of 4%. The highlight this week will be the US Consumer Price Index (CPI) and India’s Wholesale Price Index (WPI) inflation data.
The Indian Rupee (INR) edged lower on Tuesday as traders avoided taking large positions on the occasion of the Diwali Balipratipada holiday. Inflation in India slowed down for the third consecutive month in October, coming closer to the central bank’s medium-term target of 4%. However, India is particularly vulnerable to higher crude prices as it is the world’s third-biggest oil consumer. Investors will closely monitor the US Consumer Price Index (CPI) data due on Tuesday.
The Indian Rupee remains sensitive to global factors and uncertainty. India’s Consumer Price Index (CPI) rose 4.87% YoY in October from 5.02% in September, above the market expectation of 4.80%. The Reserve Bank of India (RBI) has kept interest rates unchanged for four straight meetings while maintaining a relatively hawkish policy stance to alleviate price pressures.
The Indian Rupee keeps a bearish outlook unchanged, trading soft on the day. The USD/INR pair trades in a familiar range of 83.00–83.35 since September. The USD/INR bullish potential remains intact as the pair holds above the key 100- and 200-day Exponential Moving Averages (EMA) on the daily chart.
