USD/INR: Indian Rupee Flexing its Muscle Ahead of FOMC

Indian Rupee is flexing its muscle and continues on its upward trajectory for the second consecutive day ahead of the key Fed interest rate decision. On the currency market, the value of Rupee continued to appreciate by 14 paise settling at 70.76 against the US dollar.

Tuesday’s trading session saw the USD/INR exchange rate fluctuate within the range of 70.96 — 70.76.

During the early Asia trading hours and after the London open, the USD/INR exchange rate was seen quoted within a tight range of 70.70 — 70.88. The dollar index, which gauges the greenback’s strength against a basket of major currencies couldn’t keep its Friday’s gains and lost more territory settling down at 97.52.

In other news, China’s consumer inflation shoots up to an 8-year high, official statistic revealed on Tuesday. China’s CPI inflation surged to 4.5% in November well-above the market consensus of 4.2% and 3.8% previous reading. The acceleration in inflation was assigned to rising food prices. Pork prices in China doubled from a year earlier after it jumped 110% as African swine fever, increased the demand for the Chinese pork.

On the other hand, core CPI inflation excluding food and energy prices remained largely muted.

Meanwhile, currency traders hope for more progress on the ongoing US — China trade talks ahead of the next hike in US tariffs on Chinese goods that is scheduled to hit the financial market on 15 December.

Elsewhere, moving forward the Fed’s interest rate decision would be the focal point for the markets. The market consensus expects the US Federal Reserve to reiterate its stance on halting further cuts, but market participants will look for more hints for the future path of the Fed’s monetary policy.

The domestic benchmark equity index NIFTY 50 closed on a negative tone during Tuesday’s trading session and settled at 11856, registering a -0.68% loss. Year-to-date the Indian stock market has gained 9.15%, benefiting from foreign investment inflow.

During early Asia trading hours, NIFTY 50 was seen quoted almost unchanged at 11865. The Indian 10-year government bond yield was seen quoted at 6.72 versus 6.71 previous closing prices. is a news site only and not a currency trading platform. 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.