The Indian Rupee (INR) has shown signs of recovery in Monday’s Asian session as the US Dollar (USD) weakens. Despite this positive movement, the INR faces challenges such as ongoing USD demand from oil importers, foreign outflows from Indian equities, and geopolitical risks in the Middle East. The Federal Reserve is expected to maintain interest rates at its upcoming meeting, with traders closely watching for any dovish comments that could impact the USD. The Reserve Bank of India (RBI) is also expected to intervene in the FX market to stabilize the INR.
Looking ahead, key events such as the US Nonfarm Payrolls report and the Indian HSBC Manufacturing PMI will influence the currency markets. Technical analysis suggests a bullish trend for the USD/INR pair, with potential resistance at 83.85 and support at 83.45. The recent attack in the Golan Heights and the US Personal Consumption Expenditures Price Index are also factors to consider in the market movement.
Daily Digest Market Movers: Indian Rupee rebounds despite multiple headwinds
- Forecasts indicate a steady rise in the Dollar-Rupee pair, with potential support at 83.45 and resistance at 83.85.
- Foreign investors have sold about $1 billion worth of Indian equities since the government’s tax proposals.
- Geopolitical tensions in the Middle East, such as the Golan Heights attack, add uncertainty to the market.
- US economic indicators like the PCE Price Index and Consumer Sentiment Index impact currency movements.
Technical analysis: Indian Rupee’s bearish picture remains intact
The USD/INR pair maintains a bullish trend, supported by an uptrend line and the 100-day EMA. The RSI suggests a long-term bullish outlook, with potential resistance at 84.00. Support levels are identified at 83.70, 83.51, and 83.44. The recent market movements and events will determine the future direction of the USD/INR pair.
Stay informed about the latest market updates and economic indicators to make informed investment decisions. Keep an eye on key events and geopolitical developments that could impact currency movements. Consider consulting with a financial advisor to manage your investments effectively based on market trends and analysis.