India rupee set to extend rally as RBI support and softer U.S. inflation bolster outlook

Rupee rally gains traction thanks to RBI backing and softer U.S. inflation, while flows and Fed cues remain key drivers.

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India rupee set to extend rally as RBI support and softer U.S. inflation bolster outlook

The Indian rupee is forecast to open higher as the Reserve Bank of India’s earlier intervention and a weaker-than-expected U.S. inflation print boost confidence. The rupee’s strength comes as foreign flows are drawn back, ahead of the Federal Reserve’s upcoming rate decision and as global risk sentiment improves. Bond and currency markets will closely watch Fed-tone and flow reversals, especially given earlier foreign-investor outflows from India. Domestic markets may benefit if the trend holds.
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