🇺🇸📉 US Fed Rate Cut: Can It Stabilise the Indian Rupee?
What’s happening
The US Fed is widely expected to cut interest rates by 25 basis points (bps) at its upcoming meeting — sending global markets on edge.
The INR has recently dipped past the 90 mark vs USD, hitting record‑low territory — but traders are hoping the Fed move might soften the US dollar and relieve some pressure.
Why it matters
A softer US dollar could narrow interest‑rate differentials between India and the US — potentially attracting foreign capital back into India and giving the rupee a chance to recover.
That said — several analysts warn the boost might be muted: India’s trade deficit, weak foreign inflows, and global uncertainty could still weigh heavily.
What to watch — and what’s uncertain
Success depends on how “dovish” the Fed’s tone is — not just the rate cut itself. If future‑rate guidance is cautious, the rupee rally could fizzle.
Domestic and external factors (trade deficit, capital flows, crude oil prices) remain major wildcards — so any recovery may be modest and temporary.
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