{"id":13033,"date":"2024-04-29T08:31:17","date_gmt":"2024-04-29T08:31:17","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=13032"},"modified":"2025-03-06T06:58:21","modified_gmt":"2025-03-06T06:58:21","slug":"rupee-under-pressure-from-delayed-us-rate-cuts","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/analysis\/13033\/","title":{"rendered":"Rupee Under Pressure From Delayed US Rate Cuts"},"content":{"rendered":"\n<p>The Indian rupee closed lower against the U.S. dollar on Monday, settling at 83.41, down from its<a href=\"https:\/\/www.reuters.com\/markets\/currencies\/rupee-inches-up-tracking-asian-peers-forward-premiums-rise-2024-01-09\/\"> previous session&#8217;s close<\/a> of 83.34. <\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/04\/Selected-photo-5-1024x515.jpg\" alt=\"\" class=\"wp-image-13040\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>SEE: USD makes significant gains against INR on VT Markets\u00a0<a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" target=\"_blank\" rel=\"noreferrer noopener\">trading app<\/a>.<\/em><\/p>\n\n\n\n<p>Factors such as increased dollar purchases by foreign banks and weakness across Asian currencies shaped this outcome, driven by expectations that the U.S. might delay interest rate cuts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Yen Rebounds, Dollar Index Dips<\/strong><\/h3>\n\n\n\n<p>In global markets, the dollar index fell by 0.3% to 105.6 as the yen rebounded after briefly falling below the 160-per-dollar mark. This <a href=\"https:\/\/www.cnbc.com\/2023\/11\/23\/holiday-thins-trading-after-data-nudges-dollar-higher.html\">movement occurred during a trading session thinned by a holiday in Japan<\/a>, which affected market liquidity and volatility.<br><br><strong><em>You might be interested\u2014<a href=\"https:\/\/www.vtmarkets.com\/blog\/sakura-viewing-in-japan-is-now-cheaper-with-weakening-jpy\/\">Sakura Viewing in Japan is Now Cheaper with Weakening JPY &#8211; VT Markets<\/a><\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Indonesian Rupiah Declines<\/strong><\/h3>\n\n\n\n<p>Among regional currencies, the <a href=\"https:\/\/twitter.com\/business\/status\/1774986344709713968\">Indonesian rupiah fell<\/a> by 0.2%, marking the largest drop in the region. Analysts link these losses to a shift in expectations for U.S. monetary policy. Data showing stronger-than-expected <a href=\"https:\/\/www.vtmarkets.com\/analysis\/today-gold-sees-slight-uptick-ahead-of-u-s-inflation-data\/\">U.S. inflation<\/a> and economic activity has led to a reevaluation of when the U.S. will cut rates, which in turn has pushed up U.S. bond yields and strengthened the dollar.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The economic outlook is back to sticky US inflation and \u201chigher for longer\u201d monetary policy. Here\u2019s your Weekend Reading <a href=\"https:\/\/t.co\/mLPvms99mF\">https:\/\/t.co\/mLPvms99mF<\/a><\/p>&mdash; Bloomberg Economics (@economics) <a href=\"https:\/\/twitter.com\/economics\/status\/1784191191635894752?ref_src=twsrc%5Etfw\">April 27, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>A state-run bank\u2019s foreign exchange trader noted that despite some early weakness in the rupee, where it approached 83.45 against the dollar, the currency might soon show some resilience.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Anticipating Federal Reserve Policy Decision<\/strong><\/h3>\n\n\n\n<p>This week, the market&#8217;s focus will turn to the <a href=\"https:\/\/fortune.com\/2024\/04\/27\/jerome-powell-hawkish-pivot-fed-meeting-interest-rates-global-market\/\">Federal Reserve&#8217;s <\/a>policy decision on Wednesday. The central bank is likely to hold interest rates steady, but investors will closely watch Chair Jerome Powell\u2019s comments for clues about the future direction of U.S. interest rates.<\/p>\n\n\n\n<p>Market expectations now reflect a more conservative outlook for U.S. monetary easing, with only one rate cut expected in 2024.<\/p>\n\n\n\n<p><strong>Start trading today. Click <\/strong><a href=\"https:\/\/www.vtmarkets.net\/trade-now\/\"><strong>here <\/strong><\/a><strong>to open a CFD trading account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Indian rupee closed lower against the U.S. dollar on Monday, settling at 83.41, down from its previous session&#8217;s close of 83.34. SEE: USD makes significant gains against INR on VT Markets\u00a0trading app. Factors such as increased dollar purchases by foreign banks and weakness across Asian currencies shaped this outcome, driven by expectations that the <a href=\"https:\/\/www.vtmarketsglobal.com\/en\/analysis\/13033\/\" class=\"read-more\">Continue Reading<\/a><\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3],"tags":[29,31,40],"class_list":["post-13033","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-dollar","tag-forex","tag-rupee"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"luna","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/luna\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/13033","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=13033"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/13033\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=13033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=13033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=13033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}