The Indian Rupee (INR) is showing resilience in Wednesday’s early Asian session, even in the face of a stronger US Dollar (USD). The potential for intervention from the Reserve Bank of India (RBI) is expected to keep the INR stable in the near term, despite challenges such as higher crude oil prices and foreign outflows. Investors are eagerly awaiting the RBI’s Monetary Policy Committee (MPC) interest rate decision on Thursday, with expectations of no change in the repo rate.
Daily Digest Market Movers: Indian Rupee gains ground amid multiple challenges
- Market experts anticipate the RBI to shift to a neutral stance, moving away from a hawkish tone in its upcoming MPC meeting.
- India’s fiscal deficit trends will play a crucial role in determining the country’s sovereign ratings.
- Deloitte India predicts a strong economic growth rate of 7.0–7.2% for the current fiscal year, driven by domestic policy reforms.
- The US trade deficit narrowed in June, with a notable increase in exports of goods and services.
Technical analysis: USD/INR’s constructive outlook prevails
The USD/INR pair maintains a bullish trend on the daily chart, supported by the 100-day Exponential Moving Average (EMA) and an uptrend line since June. The Relative Strength Index (RSI) suggests upward momentum, with a potential upside target at 84.00. On the downside, initial support lies at the 83.78 level, followed by the 100-day EMA at 83.49.
US Dollar price today
The table below highlights the percentage changes of the US Dollar (USD) against major currencies today. The USD showed weakness against the New Zealand Dollar.
Indian Rupee FAQs
- The INR is influenced by factors such as Crude Oil prices, the US Dollar value, foreign investment, RBI interventions, and interest rates.
- The RBI intervenes in forex markets to maintain stability and adjusts interest rates to control inflation and strengthen the Rupee.
- Macroeconomic factors like inflation, interest rates, GDP growth, trade balance, and foreign investment inflows impact the Rupee’s value.
- Higher inflation can negatively affect the Rupee, while lower inflation may lead to increased demand from international investors.
Overall, the Indian Rupee’s performance is closely tied to global economic factors, RBI interventions, and domestic policy reforms. Investors should keep a close eye on the upcoming RBI MPC meeting for insights into the Rupee’s future trajectory.