The Indian Rupee (INR) is facing pressure in Tuesday’s early Asian session due to USD demand from local banks and corporates, as well as higher crude oil prices. These factors are expected to limit the INR’s gains. Additionally, dovish comments from US Federal Reserve Chair Jerome Powell have raised expectations of a deeper rate cut in the upcoming September meeting, further impacting the INR’s performance.
Investors are eagerly awaiting the US August CB’s Consumer Confidence data, along with other key events scheduled later this week. The US GDP Annualized for Q2 and PCE Price Index data will be closely monitored, while India’s GDP Quarterly for Q1 is set to be published on Friday.
Market Movers: Indian Rupee Vulnerable Amid Global Factors and Challenges
- Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, expects the rupee to trade with a slight positive bias, driven by global risk sentiments and dovish Fed speak.
- India’s economic growth is projected to have slowed in the April-June quarter due to lower government spending.
- San Francisco Fed President Mary Daly and Richmond Fed President Thomas Barkin have expressed views on potential interest rate cuts.
- US Durable Goods Orders for July surpassed market expectations, indicating a significant gain.
- Market futures are indicating a near 40% chance of a half-percentage point rate cut.
Technical Analysis: USD/INR Outlook
Despite trading softer, the USD/INR pair remains bullish in the longer term. The pair is currently above the key 100-day EMA on the daily chart. However, the price has dipped below an uptrend line and the RSI suggests potential consolidation ahead.
Key resistance levels for USD/INR include 84.00 and 84.24, with further targets at 84.50. On the downside, support is seen at 83.77 and 83.57.
US Dollar Price Today
The table below displays the percentage change of the US Dollar (USD) against major currencies, with the USD weakening against the New Zealand Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.01% | 0.03% | 0.00% | -0.03% | 0.28% | -0.06% | 0.03% |
Indian Rupee FAQs
- Factors influencing the INR include Crude Oil prices, USD value, foreign investment, RBI interventions, and interest rate policies.
- RBI intervenes in forex markets to maintain stability and inflation targets, impacting the Rupee’s strength.
- Macroeconomic factors like inflation, interest rates, GDP, trade balance, and foreign inflows also play a crucial role in determining the Rupee’s value.
- Higher inflation can negatively impact the Rupee, while lower inflation may lead to positive outcomes for the currency.
Understanding these market dynamics and factors affecting the Indian Rupee can help individuals make informed decisions regarding their finances and investments. Stay updated on global developments and economic indicators to navigate the financial landscape effectively.