Indian Rupee waits for fresh cues from the US Federal Reserve, which is scheduled to deliver its interest rate decision later this week. The Indian Rupee closed at 70.732 against the greenback at the end of the last week’s trading session. After, the Asia session, the Indian Rupee was trading slightly higher and was quoted at 70.588 against the US dollar.

Indian stock exchange will remain close on Monday due to holiday Diwali-Balipratipada. The NIFTY 50 settled at 11627, but it closed last week of trading activity slightly lower. Overall the domestic equity market has benefited from the surprise corporate tax cut delivered in September.

The corporate tax rate was lowered from 30% down to 22% to boost India’s faltering economy. Since the beginning of the year NIFTY 50 has posted a 9.3% growth. The 10-year government bond yield is also down more than -11.70% year-to-dates.

From the other side of the monetary policy spectrum, all eyes focus on the Fed interest rate decision which concludes on October 30. Foreign investors are expecting the US Federal reserve to deliver another rate cut of 0.25%. This will bring the target range for the funds rate down to 1.5% to 1.75%. Naturally, this should have a negative impact on the US dollar. This move, it’s likely to trigger more fund flow to the Indian equity market

USD/INR Technical Pattern

While the USD/INR exchange rate remains range-bound, it’s threatening to break below the key support level 70.350. This held the exchange rate higher since the beginning of August. A daily break and close below the 70.350 should open up the door for another attempt to break the psychological number 70.000. This aligns perfectly with the 200-day moving average.

The market is still waiting for a catalyst to motivate a break out of the current consolidation. The US Fed’s interest rate decision scheduled on Wednesday can be a source to disrupt the market volatility. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.