The Indian Rupee (INR) is on the rise in early Asian trading on Thursday, buoyed by a decline in the US Dollar (USD). The recent decision by the US Federal Reserve to maintain interest rates has weakened the USD, providing support for the INR. However, factors such as outflows from Indian equities, USD demand from importers, and geopolitical tensions in the Middle East could limit the INR’s gains. Additionally, fluctuations in the Chinese Yuan and rising crude oil prices pose challenges for the INR, as India is a significant consumer of oil.
Traders are eagerly awaiting the release of the Indian July HSBC Manufacturing PMI for further market direction. Meanwhile, the dovish stance of Fed Chair Jerome Powell and the possibility of an interest rate cut in September are key factors to watch in the global market.
Key Market Updates: Indian Rupee Faces Global Challenges
- India’s Ratings and Research (Ind-Ra) has raised its economic growth forecast to 7.5% for the current fiscal year, surpassing other estimates.
- The final reading of the HSBC Manufacturing PMI is expected to show improvement in July.
- Fed Chair Jerome Powell hints at a potential interest rate cut in September, leading to market expectations of a 25 basis points reduction.
Technical Analysis: USD/INR Outlook and Forecast
The USD/INR pair remains bullish in the longer term, supported by key technical indicators. The price is holding above the 100-day Exponential Moving Average (EMA) and remains within an uptrend since June. The Relative Strength Index (RSI) suggests further upside potential in the near term.
Resistance levels are identified at 83.85 and 84.00, while support levels lie at 83.70, 83.51, and 83.45. Traders should monitor these levels for potential trading opportunities.
US Dollar Price Today: Currency Market Overview
The US Dollar (USD) has shown mixed performance against major currencies today, with notable weakness against the Japanese Yen. Traders can track the percentage changes in USD against other currencies in the table below.
Indian Rupee FAQs: Understand the Factors Influencing INR
For those interested in the Indian Rupee (INR), it is essential to consider external factors such as Crude Oil prices, USD value, foreign investment, and RBI interventions. These factors play a significant role in shaping the value of the INR in the global market.
By staying informed about market updates, technical analysis, and currency trends, traders and investors can make well-informed decisions to navigate the complex financial landscape.