The markets will now have an increased focus on Wednesday’s US consumer price index to determine the possibility of a freer or more constrained hand in refocusing on the labour market by the Fed.
Despite the US dollar gaining strength—fuelled by recent robust employment data—the Indian rupee has displayed resilience, according to Amit Pabari, managing director of CR Forex Advisors.
Several factors, including a narrowing fiscal deficit, stable oil prices, stronger economic growth, and the RBI’s substantial reserves of $675 billion, ready to deploy if needed, underpin this stability, he said.
The rupee may trade in a narrow range of Rs 83.80–84.00 on Tuesday, with a slightly broader range of Rs 83.90–84.20 anticipated in the medium term, said Pabari.
