USD/INR edges lower on Wednesday in the early European session.
INR appreciates on IMF growth outlook.
US Doller Index retreats from yearly highs near 94.50.
USD/INR came under pressure after testing the high intraday high around 75.50 on Wednesday. After posting yearly highs in the previous session, the pair retreats following the depreciative move in the greenback. At the time of writing, USD/INR is trading at 75.41, down 0.08% for the day.
US Dollar retreats from one -year high
The US Dollar Index, which tracks the greenback performance against its six major rivals, trades at 94.37 with 0.15% losses. The market sentiment is being cautious on the increased bet that Fed will announce tapering to begin as soon as November. Minutes of the FOMC meeting and the US Core Purchasing Inflation (CPI) index due later today is keenly awaited for more clues on the Fed’s action.
Indian Rupee (INR) appreciated the following reports from the International Monetary Fund (IMF), which stated that India’s economy is expected to grow by 9.5% in 2021 and 8.5% in 2022. The projection is way higher than the developed economies.
As for now, the dynamics around the US dollar continue to influence the pair’s performance.