{"id":14535,"date":"2024-08-09T07:59:40","date_gmt":"2024-08-09T07:59:40","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=14535"},"modified":"2024-08-09T07:59:40","modified_gmt":"2024-08-09T07:59:40","slug":"rupee-holds-near-record-low-despite-positive-asian-market-cues","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/rupee-holds-near-record-low-despite-positive-asian-market-cues\/","title":{"rendered":"Rupee holds near record low despite positive Asian market cues"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\"><strong>Key Points<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Asian currencies gained 0.1%-0.2%, and equities rose following strong US jobless claims data, easing recession fears.<\/li>\n\n\n\n<li>Despite positive Asian cues, the Indian rupee remains among the worst performers this month, reflecting strong US dollar demand.<\/li>\n\n\n\n<li>The rupee&#8217;s divergence from Asian trends, driven by consistent dollar demand, highlights external pressures on the currency.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This is a follow up article to: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/rupee-may-drop-to-near-84-usd-rbi-intervention-likely\/\">Rupee may drop to near 84\/USD<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Indian rupee has a relatively unchanged opening on Friday, hovering near its all-time low despite the positive sentiment seen across Asian markets.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/08\/USDINR-1024x473.jpeg\" alt=\"\" class=\"wp-image-14536\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Picture: USDINR price at record low despite positive asian market cues, as observed on the<\/strong><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\"><strong> <\/strong><strong>VT Markets app<\/strong><\/a><strong>.<\/strong>&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Non-deliverable forwards suggest that the rupee (Symbol: USDINR) will open at levels similar to the previous session, around 83.9625, close to its lifetime low of 83.9725 reached on Wednesday.<\/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\">India\u2019s central bank looks to have drawn a new line in the sand for the rupee at the 84-per-dollar level, according to analysts <a href=\"https:\/\/t.co\/0cYt9kL96F\">https:\/\/t.co\/0cYt9kL96F<\/a><\/p>&mdash; Bloomberg Markets (@markets) <a href=\"https:\/\/twitter.com\/markets\/status\/1821710377555530206?ref_src=twsrc%5Etfw\">August 9, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Divergence from its Asian peers<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The underperformance of the Indian rupee is notable given the broader positive sentiment across Asian markets. While other regional currencies have benefited from a softening dollar and positive economic data from the US, the rupee has struggled to gain traction. This divergence suggests that domestic factors, including strong dollar demand and potentially structural weaknesses, are exerting downward pressure on the currency.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>US economic influence hits rupee<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The recent rise in US Treasury yields and the strong performance of the S&amp;P 500 index, which had its best day since November 2022, have further complicated the outlook for the rupee. The better-than-expected US jobless claims data has temporarily alleviated recession fears, but it has also led to a retreat in the odds of a 50 basis points Federal Reserve rate cut in September. Currently, the probability of such a cut has decreased to 55%, down from near certainty earlier in the week.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Related content: <a href=\"https:\/\/www.vtmarkets.com\/blog\/education\/interest-rate-tug-of-war-for-central-banks-hawkish-vs-dovish\/\">Interest rate tug-of-war for central banks<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For traders, the continued weakness in the rupee presents both risks and opportunities. The divergence from broader Asian trends could lead to increased volatility, particularly if external factors such as US economic data or shifts in Federal Reserve policy come into play.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\"><strong>Create your live VT Markets account<\/strong><\/a><strong> and<\/strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\"><strong> <\/strong><strong>start trading<\/strong><\/a><strong> now.<\/strong>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Points This is a follow up article to: Rupee may drop to near 84\/USD The Indian rupee has a relatively unchanged opening on Friday, hovering near its all-time low despite the positive sentiment seen across Asian markets.&nbsp; Picture: USDINR price at record low despite positive asian market cues, as observed on the VT Markets<a href=\"https:\/\/www.global-vtrader.com\/en\/analysis\/rupee-holds-near-record-low-despite-positive-asian-market-cues\/\" class=\"read-more\">Continue Reading<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[12],"class_list":["post-14535","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-forex"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14535","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=14535"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14535\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=14535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=14535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=14535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}