On Wednesday the US is announcing the interest rate changes by the Fed along with inflation statistics. This is likely to result in the Indian Rupee hitting an all-time low at the opening time.
As per the estimates the inflation project is around 0.30% on a month to month basis.
On the other hand, the Fed is likely to have a hawkish stance with the estimation of a 25 to 50 bps rise in 2024 compared to 75 bps previously and a long-term rate target of 2.70%.
This can result in Indian Non-deliverable forwards opening around 83.58-83.60 against the USD in comparison to 83.5750 low in April. On Tuesday, the Rupee crossed its support level of 83.50-83.55.
However, amidst this, the Reserve Bank of India is likely to intervene in the non-deliverable forward market before the opening hours to prevent such a fall.
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