Investors await the June FOMC minutes after the Fed held rates at 3.50%-3.75% and signaled potential year-end hikes.
The Indian Rupee weakens against the US Dollar, with the USD/INR pair climbing to near 85.42. The US Dollar Index (DXY) rises 0.15% to 101.03, recovering from last week’s dip to 100.55.
The Federal Reserve left interest rates unchanged in June, while its dot plot indicated nine of 19 policymakers support a rate hike by year-end. Markets await Wednesday’s FOMC minutes for further clarity after Fed Chair Kevin Warsh offered no forward guidance.
Lower oil prices, with MCX Crude near $6,550, may ease pressure on the INR, as India relies on oil imports. The Strait of Hormuz traffic normalization has contributed to the decline in energy costs.