Indian Rupee faces bearish trend in Asian session as USD demand rises
Today in Asian trading, the Indian Rupee (INR) continues to show weakness as it hovers near its all-time low. The increased demand for the US Dollar (USD) from importers is putting pressure on the INR, but interventions by the Reserve Bank of India (RBI) and speculation of a Fed rate cut are expected to limit its decline. Traders are awaiting the US August employment report later in the day for further market direction.
Key Market Updates on Indian Rupee and USD
- Importers and FPIs continue to drive the USD/INR pair to new lows, while RBI ensures stability below the psychological level of Rs 84.00 per dollar.
- Private sector employment in the US saw an increase of 99,000 in August, falling short of expectations, while weekly jobless claims dipped slightly.
- US ISM Services PMI beat estimates in August, signaling a positive outlook for the economy.
- Chicago Fed President’s comments on interest rate policy are expected to influence market sentiment.
Technical Analysis and Forecast for USD/INR
The USD/INR pair remains within an ascending triangle pattern, with the long-term trend favoring the bulls. The pair is supported by the 100-day Exponential Moving Average (EMA) and the Relative Strength Index (RSI) in bullish territory. A breakout above the 84.00-84.05 zone could lead to further upside towards 84.50, while a break below 83.90 may target the 100-day EMA at 83.64.
Understanding the Impact on Your Finances
For investors and traders, the current bearish trend in the Indian Rupee suggests potential opportunities for currency trades. Keeping an eye on key economic indicators like the US employment report and Fed rate decisions can help in making informed decisions. It’s important to assess the risks and rewards of trading in volatile currency markets and seek professional advice if needed.