The Indian Rupee opens nearly flat against the U.S. Dollar at around 87.75 on Wednesday. The USD/INR pair consolidates as expectations of the Federal Reserve’s interest rate cut influence the dynamics, mitigating some of the downside effects of weakness in the Rupee.

Amid cooling inflation in India, market participants anticipate possible easing from the Reserve Bank of India (RBI). This environment creates a unique backdrop that traders should closely monitor as potential opportunities may arise in the currency pair’s movements.

Understanding inflation trends and central bank policies will be vital for traders. Being well-informed can help in strategizing to effectively navigate through potential volatility in this space.