The USD/INR pair rises to about 88.60 as the Indian Rupee declines versus the US dollar.
Even though Fed dovish predictions are waning, pressure is still on the US dollar.
President Trump of the United States lowered tariffs on China from 57% to 47%.
In relation to the US dollar (USD), the Indian rupee (INR) opens Thursday at 88.60, near its bottom from Wednesday. Despite the US dollar's decline, the USD/INR pair maintains its gains from the previous day.
The US Dollar Index (DXY), which compares the value of the US dollar to six other major currencies, is currently trading lower at about 99.00.
After Fed Chair Jerome Powell rejected expectations of additional monetary policy easing in December, the US dollar saw strong bids on Wednesday. This came after interest rates were lowered by 25 basis points (bps), to 3.75%-4.00%.
In the press conference following the interest rate policy announcement, Fed Chair Powell stated, "Today's cut was risk management, but another drop in December is far from guaranteed." Powell emphasized that it would not be proper to overlook the risks of inflation persisting, although he did assure that they have greatly decreased since April. Powell has again voiced concerns about the state of the job market, stating that "available evidence implies layoffs and hiring remain low."
Market movers for the daily digest: Indian Rupee performs worse than its peers
In contrast to the unrelenting selling that occurred during the July–September period, the general trading activity by Foreign Institutional Investors (FIIs) in October has so far shown to be somewhat favorable. Investors are still unsure, though, if FIIs would rejoin the Indian stock market.
FIIs have purchased shares totaling Rs. 7,500.04 crores so far in October, mostly due to Tuesday's acquisition of investments totaling Rs. 10,339.80 crores. Foreign investors sold shares worth Rs. 2,540.16 crores on Wednesday after becoming negative once more.
According to a Bloomberg article this past weekend, negotiators from both countries have reached a consensus on nearly every point, and a deal may be announced shortly.
Technical Analysis: The USD/INR rises to over 88.60
The USD/INR opens Thursday at about 88.60. Returning, the pair aims to stay above the 20-day Exponential Moving Average (EMA), which is now trading at 88.44. This implies that the current short-term trend has become positive.
The Relative Strength Index (RSI) for the 14-day period increases to 60.00. If the RSI rises above that level, new bullish momentum would appear.
Looking downward, the pair will find significant support at the low of 87.07 on August 21. The all-time high of 89.12 will be a significant obstacle on the upside.
Even though Fed dovish predictions are waning, pressure is still on the US dollar.
President Trump of the United States lowered tariffs on China from 57% to 47%.
In relation to the US dollar (USD), the Indian rupee (INR) opens Thursday at 88.60, near its bottom from Wednesday. Despite the US dollar's decline, the USD/INR pair maintains its gains from the previous day.
The US Dollar Index (DXY), which compares the value of the US dollar to six other major currencies, is currently trading lower at about 99.00.
After Fed Chair Jerome Powell rejected expectations of additional monetary policy easing in December, the US dollar saw strong bids on Wednesday. This came after interest rates were lowered by 25 basis points (bps), to 3.75%-4.00%.
In the press conference following the interest rate policy announcement, Fed Chair Powell stated, "Today's cut was risk management, but another drop in December is far from guaranteed." Powell emphasized that it would not be proper to overlook the risks of inflation persisting, although he did assure that they have greatly decreased since April. Powell has again voiced concerns about the state of the job market, stating that "available evidence implies layoffs and hiring remain low."
Market movers for the daily digest: Indian Rupee performs worse than its peers
In contrast to the unrelenting selling that occurred during the July–September period, the general trading activity by Foreign Institutional Investors (FIIs) in October has so far shown to be somewhat favorable. Investors are still unsure, though, if FIIs would rejoin the Indian stock market.
FIIs have purchased shares totaling Rs. 7,500.04 crores so far in October, mostly due to Tuesday's acquisition of investments totaling Rs. 10,339.80 crores. Foreign investors sold shares worth Rs. 2,540.16 crores on Wednesday after becoming negative once more.
According to a Bloomberg article this past weekend, negotiators from both countries have reached a consensus on nearly every point, and a deal may be announced shortly.
Technical Analysis: The USD/INR rises to over 88.60
The USD/INR opens Thursday at about 88.60. Returning, the pair aims to stay above the 20-day Exponential Moving Average (EMA), which is now trading at 88.44. This implies that the current short-term trend has become positive.
The Relative Strength Index (RSI) for the 14-day period increases to 60.00. If the RSI rises above that level, new bullish momentum would appear.
Looking downward, the pair will find significant support at the low of 87.07 on August 21. The all-time high of 89.12 will be a significant obstacle on the upside.
