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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid persistent caution in emerging markets due to US monetary policy and geopolitical tensions, the Indian rupee fell to its lowest level in nearly three weeks against the US dollar. According to Reuters reports, Asian currencies broadly declined as investors focused on the Federal Reserve's policy path and risks of war with Iran, weighing on risk sentiment and emerging-market currencies.
The move follows strong US economic data that showed GDP growth of 2.1% in the second quarter and the Personal Consumption Expenditures price index rising to 4.1% year-on-year (per market data). Durable goods orders also posted a sharp decline of -4.5%, reflecting a mixed US economy and reinforcing expectations that the Fed will maintain a hawkish stance for longer.
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Sign InTraders are eyeing upcoming Fed speeches this week, including those from Bowman and Goolsbee, for signals on the interest rate path. Geopolitical developments in the Middle East remain a key driver of risk sentiment, and any further escalation could add fresh pressure on the rupee and other Asian currencies.