INDIA: RBI Intervention Continues to Prevent Further Slide in Rupee

India's central bank was selling dollars at the 83.97 level on Wednesday to keep the rupee from dropping to a new all-time low, according to Reuters sources. USD/INR has been pinned close to its recent highs over the past month, with the rupee the only major Asian currency to have recorded spot losses versus the greenback since the beginning of August.

• Meanwhile, the Nifty and Sensex indices sit around 0.3% lower, following losses seen across wider Asia benchmarks after a sell-off in tech related indices during the US session Tuesday. Downward pressure on crude prices from expectations of an OPEC+ cut unwinding, coupled with comments from the Libyan central bank Governor that production could be resumed, contributed to a >4% decline in WTI futures yesterday, with broader concerns about the global economy, fueled by disappointing US ISM data, exacerbating the risk-off sentiment across the region.
• In India, local data releases are thin this week, with CPI figures for July the next release of note on September 12. Before that, Friday’s NFP report is set to be one of the most important single releases in quite some time. With Chair Powell dialling up focus on the labour market at his Jackson Hole speech, it will likely determine whether markets expect a 25bp or 50bp start to the Fed’s cutting cycle on September 18.