The USD/INR currency pair recently experienced a significant drop after reaching a record high, sparking speculation about potential intervention by the Reserve Bank of India (RBI) to support the Indian Rupee. The exchange rate is currently at 86.88, having previously fallen to 86.64, after hitting an all-time high of 87.99 earlier.
Last Friday, the RBI made a notable move by cutting its policy rate for the first time in nearly five years, aiming to bolster the economy. This decision has fueled market expectations of further rate cuts and potential depreciation of the Rupee, especially if there are signs of economic slowdown or cooling inflation.
Investors are now keenly awaiting the release of India's inflation data, which is scheduled for Wednesday, as it could provide further insights into the country's economic trajectory and influence future monetary policy decisions.
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