Foreign Exchange_Forex Market_Forex Trading_Forex Investment - mydayfinance.com
  • Central Bank
    • BOC
    • BOE
    • BOJ
    • ECB
    • FED
    • PBOC
    • RBA
    • UBS
  • Currency
    • AUD
    • CAD
    • CHF
    • CNY
    • EUR
    • GBP
    • INR
    • JPY
    • RUB
    • SGD
    • USD
  • Foreign Exchange Rate
    • AUD exchange rate
    • CAD exchange rate
    • CHF exchange rate
    • EUR exchange rate
    • GBP exchange rate
    • RMB exchange rate
    • YEN exchange rate
  • Knowledge
  • News
No Result
View All Result
  • Central Bank
    • BOC
    • BOE
    • BOJ
    • ECB
    • FED
    • PBOC
    • RBA
    • UBS
  • Currency
    • AUD
    • CAD
    • CHF
    • CNY
    • EUR
    • GBP
    • INR
    • JPY
    • RUB
    • SGD
    • USD
  • Foreign Exchange Rate
    • AUD exchange rate
    • CAD exchange rate
    • CHF exchange rate
    • EUR exchange rate
    • GBP exchange rate
    • RMB exchange rate
    • YEN exchange rate
  • Knowledge
  • News
No Result
View All Result
Foreign Exchange_Forex Market_Forex Trading_Forex Investment - mydayfinance.com
No Result
View All Result
ADVERTISEMENT

Rupee Weakens for Third Straight Session Amid Fed Caution and India-Pakistan Tensions

Elena by Elena
08/05/2025
in FED
What is foreign exchange rate
ADVERTISEMENT

The Indian Rupee (INR) extended its decline against the US Dollar (USD) for the third consecutive session on Thursday, as the USD/INR pair gained ground amid a cautious outlook from the US Federal Reserve and escalating cross-border tensions with Pakistan.

The US central bank kept interest rates unchanged at 4.25%–4.50% as anticipated, but its latest policy statement flagged mounting risks tied to both inflation and unemployment. This uncertainty spurred investor caution, bolstering demand for the safe-haven dollar.

Tensions in South Asia have added to the pressure on the rupee. India recently carried out airstrikes on nine locations in Pakistan under “Operation Sindoor,” launched in response to a deadly militant attack on tourists in Indian-administered Kashmir. The operation has triggered intensified artillery exchanges along the volatile Line of Control, further rattling market sentiment.

ADVERTISEMENT

Domestically, India’s economic indicators reflect a mixed picture. Inflation dropped to a more-than-five-year low in March, significantly undershooting the Reserve Bank of India’s (RBI) 4% midpoint target. Meanwhile, annual GDP growth slowed to 6.5% in the previous fiscal year from 8.2%, prompting the RBI to pivot its focus toward supporting growth.

ADVERTISEMENT

Despite some softness in the broader US Dollar Index (DXY), which was last seen near 99.70, the greenback remains supported by the Fed’s conservative tone. Fed Chair Jerome Powell emphasized the complications posed by trade tariffs, warning they could obstruct progress on inflation and employment targets into 2025. He signaled a “wait-and-see” approach may dominate future rate decisions.

Market participants are still pricing in the likelihood of a quarter-point rate cut by July, according to CME’s FedWatch Tool.

In a key geopolitical development, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are scheduled to meet Chinese Vice Premier He Lifeng in Geneva this weekend, in the first high-level dialogue since Washington’s tariff moves ignited a global trade row. Beijing has agreed to talks after evaluating the proposals in light of global expectations and national interests.

On the domestic front, the HSBC India Composite PMI printed at 59.7 in April 2025, just shy of the 60.0 flash estimate but above March’s 59.5. The Services PMI was revised slightly down to 58.7 from a preliminary 59.1, yet still marked the 45th straight month of expansion, signaling continued private sector resilience.

ADVERTISEMENT

Bond markets remain steady, with traders expecting India’s 10-year government bond yield to hover between 6.30% and 6.40%. A decline in yields is being driven by expectations of further policy easing and the RBI’s commitment to maintain surplus liquidity through open market operations (OMOs), according to Reuters.

Technically, the USD/INR pair was last seen near 84.70, testing resistance at the nine-day Exponential Moving Average (EMA). Despite a prevailing bearish channel on the daily chart, a breakout above this level could shift momentum upward, with potential targets at 86.10 and the two-month high of 86.71. However, failure to breach the EMA may see support re-tested around 84.00, with a further decline possibly pushing the pair toward the eight-month low of 83.76.

Related Topics:

  • Current USD Exchange Rate: How Much is $100 US in Russia?
  • Current USD Exchange Rate: $300 USD in Australian Dollars
  • Current USD Exchange Rate: How Much is 500 Dollars to Yen?
Tags: demDollar Indexeekernespinflationinterest ratesiskitl
Previous Post

Why Is the Pound so Strong Against the Euro?

Next Post

Aussie Dollar Recovers Slightly After Fed-Induced Slide, Eyes on US-China Trade Talks

Elena

Elena

Elena, a seasoned foreign exchange trader with a proven track record in the dynamic world of currency markets, brings a wealth of expertise and professionalism to the financial realm. With an extensive background spanning over a decade, she has honed her skills in analyzing global economic trends and implementing strategic trading solutions. Known for her meticulous attention to detail and analytical prowess, Elena has navigated through volatile market conditions with finesse, consistently delivering impressive results for her clients. Her comprehensive understanding of macroeconomic indicators, coupled with a keen awareness of geopolitical events, allows her to make informed decisions that optimize trading portfolios. Elena's commitment to staying ahead of the curve is evident in her continuous pursuit of knowledge and mastery of cutting-edge trading technologies. Her disciplined approach to risk management ensures prudent investment strategies, instilling confidence in both colleagues and clients alike.

Related Posts

Banxico Likely to Slash Rates Despite Inflation
News

Banxico Likely to Slash Rates Despite Inflation

22/05/2025
Carew Tower to Become Mixed – Use Space
News

Carew Tower to Become Mixed – Use Space

22/05/2025
Brokerage Revises LIFL Finance Stock View
News

Brokerage Revises LIFL Finance Stock View

22/05/2025
What Is US Dollars to Pounds?
Foreign Exchange Rate

What Is US Dollars to Pounds?

22/05/2025
Why Is the Dollar Falling Against the Pound?
Foreign Exchange Rate

Why Is the Dollar Falling Against the Pound?

22/05/2025
What Does Compound Mean?
Currency

What Does Compound Mean?

22/05/2025
Why Pound Is Falling?
GBP

Why Pound Is Falling?

22/05/2025
What Are the RBI Guidelines on External Commercial Borrowing?
Central Bank

What Are the RBI Guidelines on External Commercial Borrowing?

22/05/2025
How Is the RBI Bank Account Being Opened?
Central Bank

How Is the RBI Bank Account Being Opened?

22/05/2025
Next Post
What do you mean by foreign exchange reserves

Aussie Dollar Recovers Slightly After Fed-Induced Slide, Eyes on US-China Trade Talks

blank

Pound Slips Ahead of BoE Decision as Fed Caution Fuels Dollar Demand

Which country’s currency is the euro

Gold Slips Below $3,400 as Fed Holds Rates

Tags

ALL ARS ats bam Bank of Korea bef bob Central Bank of Canada Central Bank of Russia cop cup dem Digital Currency Digital RMB Dollar Index dop eek energy crisis ern esp etb Fed rate hike financial markets forex trading gel ghs ils IMF inflation inr interest rates irr isk itl kes lak lyd monetary policy mop mro mur myr Raise Interest Rates sek Swiss National Bank

Recent Posts

Banxico Likely to Slash Rates Despite Inflation
News

Banxico Likely to Slash Rates Despite Inflation

by changzheng49
22/05/2025

In a significant development in the Mexican financial landscape, a Reuters poll conducted on Monday has indicated that Banco de...

Carew Tower to Become Mixed – Use Space

Carew Tower to Become Mixed – Use Space

22/05/2025
Brokerage Revises LIFL Finance Stock View

Brokerage Revises LIFL Finance Stock View

22/05/2025
What Is US Dollars to Pounds?

What Is US Dollars to Pounds?

22/05/2025
Why Is the Dollar Falling Against the Pound?

Why Is the Dollar Falling Against the Pound?

22/05/2025
What Does Compound Mean?

What Does Compound Mean?

22/05/2025
Why Pound Is Falling?

Why Pound Is Falling?

22/05/2025
What Are the RBI Guidelines on External Commercial Borrowing?

What Are the RBI Guidelines on External Commercial Borrowing?

22/05/2025

News

Banxico Likely to Slash Rates Despite Inflation

Banxico Likely to Slash Rates Despite Inflation

22/05/2025
Carew Tower to Become Mixed – Use Space

Carew Tower to Become Mixed – Use Space

22/05/2025
Brokerage Revises LIFL Finance Stock View

Brokerage Revises LIFL Finance Stock View

22/05/2025
US Records $16.3b in April Customs Duties

US Records $16.3b in April Customs Duties

21/05/2025
Bangladesh’s Denim Exports Surge

Bangladesh’s Denim Exports Surge

21/05/2025
London Stocks to Open Higher Monday

London Stocks to Open Higher Monday

21/05/2025
Foreign Exchange_Forex Market_Forex Trading_Forex Investment - mydayfinance.com

MydayFinance (www.mydayfinance.com) is a comprehensive foreign exchange industry website, providing global users with 24-hour comprehensive and timely foreign exchange market information, foreign exchange rate real-time query, foreign exchange rate conversion and other content.【Contact us: [email protected]】

Recent Posts

  • Banxico Likely to Slash Rates Despite Inflation 22/05/2025
  • Carew Tower to Become Mixed – Use Space 22/05/2025
  • Brokerage Revises LIFL Finance Stock View 22/05/2025
  • What Is US Dollars to Pounds? 22/05/2025
  • Why Is the Dollar Falling Against the Pound? 22/05/2025

Tags

ARS ats Bank of Korea bam bef bhd bob Central Bank of Brazil CAD to CNY Central Bank of Canada Central Bank of Russia CHF to CNY cop cup dem Digital Currency Dollar Index dop eek ern esp financial markets forex trading gel ghs

Useful Links

Home

ABOUT US

Disclaimer

Privacy Policy

Article sitemap

Forex Trading Tips

Copyright © 2024 mydayfinance.com

No Result
View All Result
  • Home
  • Central Bank
  • Currency
  • Foreign Exchange Rate
  • News

Copyright © 2024 mydayfinance.com MydayFinance (www.mydayfinance.com) is a comprehensive foreign exchange industry website, providing global users with 24-hour comprehensive and timely foreign exchange market information, foreign exchange rate real-time query, foreign exchange rate conversion and other content.