- The USD/INR remains under pressure after a slowdown in the inflation of the WPI of India, which was reduced to 2.05% year -on -year in March.
- India’s IPC is expected to show an inflation rate in cooling of 3.6% – his lowest level in eight months.
- The US dollar struggles to stabilize while the fears of stagflation continue to weigh on the feeling.
Indian rupee is strengthened against the US dollar, with the USD/INR falling more than 0.30% to quote around 85.80 during the first European hours on Tuesday. The torque remained under pressure after the publication of the inflation data of the wholesale pricing index (WPI) of India, which was reduced to 2.05% interannual, a minimum of four months in March due to a slower increase in food prices, from 2.38% in February – under 2.5% predicted in a Reuters survey.
Food wholesale prices increased at a slower pace of 4.66% in March compared to 5.94% of the previous month. The markets also prepare for the publication of the March CPI of India, with expectations that point to an inflation rate of 3.6% – the lowest level in eight months. This has strengthened the hopes that the Bank of the Reserve of India (RBI) could consider rates cuts, especially as GDP growth slows down and uncertainty persists in global trade.
In the front of the Indian actions, the Indian stock markets rose on Tuesday, following the profits on Wall Street after the US announced tariff exemptions on certain technological products. The feeling was also backed by reports that the US president, Trump, is considering similar exemptions for car manufacturers.
Meanwhile, the American dollar index (DXY), which tracks the USD in front of a basket of six main currencies, rose slightly after reaching its lowest level since 2022. It remained close to the 100.00 brand, trying to stabilize in the midst of growing concerns about the risks of stain.
In comments made previously in the session, the president of the Fed of Atlanta, Raphael Bostic, declared that the Central Bank of the USA still faces a long way to reduce inflation to its 2%goal – by doubt the market expectations on future feat cuts.
Economic indicator
WPI inflation
The inflation indicator published by Ministry of Commerce and Industry Capture price movements. Similar to the CPI, inflation measurement also includes personal computers, new cars and aerial tickets, while excluding housing occupied by its owners and municipal taxes. Generally, a high reading is bullish for the Rupee, while a lower reading is bassist.
Read more.
Last publication: Mar ABR 15, 2025 06:30
Frequency: Monthly
Current: 2.05%
Dear: 2.5%
Previous: 2.38%
Fountain: Office of the Economic Advier of India
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
