Tag: daily

The post Indian Rupee ticks lower as India’s soft retail inflation data boosts dovish RBI bets appeared com. The Indian Rupee (INR) ticks lower against the US Dollar (USD) at open on Thursday. The USD/INR pair edges up to near 88. 50 as the Indian Rupee is expected to face significant pressure due to growing expectations that the Reserve Bank of India (RBI) could loosen monetary policy conditions in the December policy meeting. RBI dovish speculation has intensified following the release of the retail Consumer Price Index (CPI) data for October, released on Wednesday. The report showed that retail inflation decelerated at a faster-than-expected pace to 0. 25% on an annualized basis, driven by soft food prices and tax cuts in consumer goods announced in the third quarter of the year. This is the second straight month when the inflation data has come below the RBI’s tolerance range of 2%-6%. “To prevent the economy from slipping into sluggish and weak economic growth, the RBI may go for a 25-50 basis points cut in repo rate in its December 2025 monetary policy,” said Devendra Pant, chief economist at India Ratings and Research, Reuters reported. Lower interest rates by the RBI bode poorly for the Indian Rupee. Meanwhile, the continuous outflow of foreign funds from the Indian stock market is also keeping the Indian Rupee under pressure. Foreign Institutional Investors (FIIs) have turned out to be net sellers in all three trading days so far this week. On Wednesday, FIIs pared stake worth Rs. 1, 750. 03 crore. Going forward, investors will focus on the Wholesale Price Index (WPI) Inflation data for October, which will be released on Friday. Daily digest market movers: Indian Rupee underperforms US Dollar The Indian Rupee weakens against the US Dollar, even as the latter trades cautiously against its major currency peers. At the time of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six.