© Reuters.
The Indian Rupee has seen an ascent against the dollar, driven by softening US currency in response to a decrease in the United States' key Consumer Price Index (CPI) figures. This development has sparked speculation among investors about a potential Federal Reserve interest rate cut by May next year.
ICICI Direct observed on Wednesday that the Rupee's rise comes amid a broader dollar correction, as declining US CPI and Producer Price Index (PPI) numbers suggest an approaching end to the Federal Reserve's cycle of interest rate hikes. The weakening of crude oil prices, coupled with the increasing likelihood of a Fed rate cut in May, has added pressure on the dollar.
Market analysts anticipate that if the USD/INR exchange rate sustains below 83.30, it could reverse towards 83.00, and possibly further down to 82.80. This outlook is based on the recent economic indicators that are influencing currency valuations.
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