The Indian rupee will find support in the coming days, buoyed by a weaker US dollar index (DXY) and expectations of strong foreign portfolio investment (FPI) inflows, a report by Union Bank of India (UBI) anticipated.
The US dollar has likely to be entered in a long-term downtrend because of several economic and political factors that suggest a weaker dollar in the coming years, according to a report by Jefferies.
The US Federal Reserve's move to cut the rate by 50 basis points will facilitate flows to emerging markets. Experts say a weaker dollar and lower rates are favourable for India and emerging economies.