Daily Digest Market Movers: Indian Rupee remains firmer amid a global risk-on mood

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  • S&P Global Ratings on Tuesday retained India's Gross Domestic Product (GDP) growth forecast at 6.8% while noting that the Reserve Bank of India (RBI) may cut interest rates in October. 
  • "We expect the rupee to trade with a positive bias amid improved global risk appetite following China's stimulus and softness in the dollar. However, elevated crude oil and other commodity prices may cap sharp upside," noted Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas.
  • The Conference Board’s US Consumer Confidence Index dropped to 98.7 in September from a revised 105.6 in August. This figure registered the biggest decline since August 2021.
  • Fed Governor Michelle Bowman said on Tuesday that key measures of inflation remain "uncomfortably above" the 2% target, warranting caution as the Fed proceeds with cutting interest rates. However, she preferred the Fed to lower by a quarter percentage point, more in line with the traditional moves at the central bank. 
  • The markets have priced in nearly 56% odds of a second 50 bps rate cut in the November meeting, while the chance of 25 bps stands at 44%, according to the CME FedWatch Tool. 

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