USD/INR loses momentum, focus on RBI’s OMO

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• Indian Rupee edges higher on Monday on the softer US Dollar (USD).
• A lower US Treasury bond yields and RBI’s potential intervention might limit the INR’s downside.
• Investors will focus on the Federal Open Market Committee (FOMC) meeting and OMO sales.

Indian Rupee (INR) trades modestly higher on Monday on the weaker US Dollar (USD). Meanwhile, a pullback in the US Treasury bond yields and the potential intervention from the Reserve Bank of India (RBI) might cap the further depreciation of INR. Furthermore, market participants will keep an eye on whether the RBI starts selling bonds via open market operations (OMO) this week as liquidity improves. Apart from this, India’s Fiscal Deficit and Infrastructure Output for September will be released on Tuesday.