emirates7 - The Indian rupee and government bonds are expected to respond to changing market expectations regarding potential interest rate cuts by the U.S. Federal Reserve this week. Investors are also closely monitoring foreign investment flows into India’s equity and debt markets.
On Friday, the rupee strengthened to 85.4750, marking a 1.3% weekly gain—its strongest weekly performance in over two years. This improvement was driven by a notable decline in crude oil prices and a broadly weaker U.S. dollar.
U.S. data released Friday showed an unexpected in consumer spending for May, while the core Personal Consumption Expenditures (PCE) Price Index rose 0.1%, the same increase as in April.
As a result, the dollar index fell by 1.5% for the week. The data reinforced expectations of interest rate cuts by the Federal Reserve, with markets now increasingly pricing in a potential rate reduction starting in September.
On Friday, the rupee strengthened to 85.4750, marking a 1.3% weekly gain—its strongest weekly performance in over two years. This improvement was driven by a notable decline in crude oil prices and a broadly weaker U.S. dollar.
U.S. data released Friday showed an unexpected in consumer spending for May, while the core Personal Consumption Expenditures (PCE) Price Index rose 0.1%, the same increase as in April.
As a result, the dollar index fell by 1.5% for the week. The data reinforced expectations of interest rate cuts by the Federal Reserve, with markets now increasingly pricing in a potential rate reduction starting in September.