Sticky US PCE inflation data supports the USD, offsetting lower crude prices and keeping USD/INR near 95.40.
The Indian Rupee opened flat against the US Dollar on Thursday, remaining close to its 10-day low of 95.40. Lower oil prices had raised expectations for a stronger INR, but a rebound in the USD countered the move.
The US Dollar Index held near 99.15 after Wednesday’s gains, driven by July’s Personal Consumption Expenditure (PCE) Price Index. Core PCE inflation matched estimates at 3.3% YoY, while headline inflation rose to 3.7%, exceeding forecasts of 3.6%. The data reinforced expectations of persistent US price pressures.
Markets await the Jackson Hole Symposium for further cues on Federal Reserve policy, though rate hike odds for September remain steady at 64%.