Rising demand for US dollars pushes the Indian rupee to a near-all-time low, causing the USD/INR to jump. In Thursday's early European session, the Indian Rupee declines to a level close to its lowest point ever.
The INR is impacted by a stronger USD, sluggish sentiment in the domestic equity markets, and a persistent outflow of foreign funds.
On Thursday, investors look to the Fedspeak for a new boost.
On Thursday, the Indian Rupee (INR) falls to almost a new record low. A stronger US dollar (USD) and rising crude oil prices continue to put pressure on the local currency. The INR is also weakened by foreign stock withdrawals and slowing economic growth.
However, in order to reduce the losses on the INR, the Reserve Bank of India (RBI) is probably going to sell the USD. For additional clues regarding the outlook for US interest rates this year, investors will be watching the Fedspeak on Thursday. The focus will switch to the US employment statistics for December on Friday, which will include the Average Hourly Earnings, Unemployment Rate, and Nonfarm Payrolls (NFP).
However, in order to reduce the losses on the INR, the Reserve Bank of India (RBI) is probably going to sell the USD. For additional clues regarding the outlook for US interest rates this year, investors will be watching the Fedspeak on Thursday. The focus will switch to the US employment statistics for December on Friday, which will include the Average Hourly Earnings, Unemployment Rate, and Nonfarm Payrolls (NFP). A stronger dollar and worries about India's slowing economic growth put pressure on the rupee.
However, in order to reduce the losses on the INR, the Reserve Bank of India (RBI) is probably going to sell the USD. For additional clues regarding the outlook for US interest rates this year, investors will be watching the Fedspeak on Thursday. The focus will switch to the US employment statistics for December on Friday, which will include the Average Hourly Earnings, Unemployment Rate, and Nonfarm Payrolls (NFP). A stronger dollar and worries about India's slowing economic growth put pressure on the rupee. Citigroup Inc. predicts the Indian Rupee will drop to 86.35 per dollar this quarter, while MUFG predicts it will weaken to 86.8 per dollar. On Wednesday, the USD/INR dropped 0.2% to close at a new all-time low of 85.8550.
India's economic growth rate is predicted to drop from 8.2% in FY24 to a four-year low of 6.4% in FY25.
According to the FOMC's December 17–18 meeting minutes, policymakers agreed that inflation would likely continue to slow this year, but they also recognized that there was a growing chance that price pressures would stay sticky because of Donald Trump's possible policies.
The US Department of Labor (DOL) reported on Wednesday that the weekly Initial Jobless Claims for the week ending January 4 in the US fell to 201K from the previous week's print of 211K. The market's expectation of 218K was exceeded by this reading.
According to Reuters, Fed Governor Christopher Waller stated on Wednesday that inflation should lower further in 2025, enabling the US central bank to further lower interest rates, albeit at an erratic rate.
Although the USD/INR remains optimistic, bulls should exercise caution due to an overbought RSI.
During the day, the Indian Rupee is trading in negative territory. Since the USD/INR pair is well-supported above the crucial 100-day Exponential Moving Average (EMA) on the daily timeframe, the pair's strong bullish outlook is still in place.
However, when the 14-day Relative Strength Index (RSI) rises above 70.00, bulls should exercise caution. Prior to positioning for any short-term USD/INR appreciation, additional consolidation cannot be ruled out, according to the overbought condition.
At the psychological mark and all-time high of 85.95-86.00, the USD/INR encounters its critical resistance level. A rally to 86.50 might occur if there is a clear break above this level.
Conversely, the pair's first level of support is located at 85.65, which was the low on January 7. The pair may drop to the next downside target at 84.51, the 100-day EMA, if the aforementioned level is breached.
The INR is impacted by a stronger USD, sluggish sentiment in the domestic equity markets, and a persistent outflow of foreign funds.
On Thursday, investors look to the Fedspeak for a new boost.
On Thursday, the Indian Rupee (INR) falls to almost a new record low. A stronger US dollar (USD) and rising crude oil prices continue to put pressure on the local currency. The INR is also weakened by foreign stock withdrawals and slowing economic growth.
However, in order to reduce the losses on the INR, the Reserve Bank of India (RBI) is probably going to sell the USD. For additional clues regarding the outlook for US interest rates this year, investors will be watching the Fedspeak on Thursday. The focus will switch to the US employment statistics for December on Friday, which will include the Average Hourly Earnings, Unemployment Rate, and Nonfarm Payrolls (NFP).
However, in order to reduce the losses on the INR, the Reserve Bank of India (RBI) is probably going to sell the USD. For additional clues regarding the outlook for US interest rates this year, investors will be watching the Fedspeak on Thursday. The focus will switch to the US employment statistics for December on Friday, which will include the Average Hourly Earnings, Unemployment Rate, and Nonfarm Payrolls (NFP). A stronger dollar and worries about India's slowing economic growth put pressure on the rupee.
However, in order to reduce the losses on the INR, the Reserve Bank of India (RBI) is probably going to sell the USD. For additional clues regarding the outlook for US interest rates this year, investors will be watching the Fedspeak on Thursday. The focus will switch to the US employment statistics for December on Friday, which will include the Average Hourly Earnings, Unemployment Rate, and Nonfarm Payrolls (NFP). A stronger dollar and worries about India's slowing economic growth put pressure on the rupee. Citigroup Inc. predicts the Indian Rupee will drop to 86.35 per dollar this quarter, while MUFG predicts it will weaken to 86.8 per dollar. On Wednesday, the USD/INR dropped 0.2% to close at a new all-time low of 85.8550.
India's economic growth rate is predicted to drop from 8.2% in FY24 to a four-year low of 6.4% in FY25.
According to the FOMC's December 17–18 meeting minutes, policymakers agreed that inflation would likely continue to slow this year, but they also recognized that there was a growing chance that price pressures would stay sticky because of Donald Trump's possible policies.
The US Department of Labor (DOL) reported on Wednesday that the weekly Initial Jobless Claims for the week ending January 4 in the US fell to 201K from the previous week's print of 211K. The market's expectation of 218K was exceeded by this reading.
According to Reuters, Fed Governor Christopher Waller stated on Wednesday that inflation should lower further in 2025, enabling the US central bank to further lower interest rates, albeit at an erratic rate.
Although the USD/INR remains optimistic, bulls should exercise caution due to an overbought RSI.
During the day, the Indian Rupee is trading in negative territory. Since the USD/INR pair is well-supported above the crucial 100-day Exponential Moving Average (EMA) on the daily timeframe, the pair's strong bullish outlook is still in place.
However, when the 14-day Relative Strength Index (RSI) rises above 70.00, bulls should exercise caution. Prior to positioning for any short-term USD/INR appreciation, additional consolidation cannot be ruled out, according to the overbought condition.
At the psychological mark and all-time high of 85.95-86.00, the USD/INR encounters its critical resistance level. A rally to 86.50 might occur if there is a clear break above this level.
Conversely, the pair's first level of support is located at 85.65, which was the low on January 7. The pair may drop to the next downside target at 84.51, the 100-day EMA, if the aforementioned level is breached.
