During Thursday's early European session, the Indian Rupee is trading in negative territory.
Month-end Demand for US dollars pushes the INR lower, but a spike in foreign investment inflows could limit its decline.
Later on Thursday, investors are anticipating the release of the final Q4 GDP report and the US weekly Initial Jobless Claims.
Thursday saw a decline in the value of the Indian Rupee (INR). The Indian currency is undercut by growing month-end demand for US dollars (USD) from importers and worries about possible tariff retaliation. Furthermore, since India is the third-largest oil consumer in the world, rising crude oil prices also hurt the value of the Indian rupee.
However, the optimistic prognosis for domestic stocks and fresh foreign investment inflows could strengthen the value of the local currency. The Reserve Bank of India's (RBI) foreign exchange intervention could limit any notable depreciation of the Indian rupee. The final Gross Domestic Product (GDP) for the fourth quarter (Q4), the US weekly Initial Jobless Claims, and Pending Home Sales are scheduled for release later Thursday.
Despite international indications, the Indian Rupee is still weak.
Over $2 billion worth of Indian shares have been purchased by foreign investors in the last four days, while over $3 billion has been invested in bonds so far this month.
Trump signed an order late Wednesday imposing a 25% vehicle import tariff. Trump also stated that the US will begin collecting the duties the following day, on April 2, when they went into force.
According to Reuters, Trump will provide importers of auto parts a one-month reprieve from his proposed 25% auto tariffs.
The US Census Bureau said Wednesday that US Durable Goods Orders increased by 0.9% in February, down from a 3.3% (revised from 3.1%) increase in January. This number exceeded the market's prediction of a 1% decline.
The pessimistic forecast for USD/INR is still in effect.
Every day, the value of the Indian Rupee declines. The price of the USD/INR pair is still trapped below the important 100-day Exponential Moving Average on the daily period, maintaining the bearish picture. The 14-day Relative Strength Index (RSI), which is below the midline at 36.0 and indicates that the path of least resistance is downward, supports the downward trend.
The low of March 26 at 85.56 is the first level of support for the USD/INR. A decline to 84.84, the low of December 19, and then 84.22, the low of November 25, 2024, might occur if there is persistent bearish pressure below the aforementioned level.
Positively, the pair's primary resistance level is in the 85.95–86.00 range, which stands for the psychological level and the 100-day EMA. The next obstacle to keep an eye on farther north is 86.48, the low recorded on February 21 on the way to 87.00, the round figure.
Month-end Demand for US dollars pushes the INR lower, but a spike in foreign investment inflows could limit its decline.
Later on Thursday, investors are anticipating the release of the final Q4 GDP report and the US weekly Initial Jobless Claims.
Thursday saw a decline in the value of the Indian Rupee (INR). The Indian currency is undercut by growing month-end demand for US dollars (USD) from importers and worries about possible tariff retaliation. Furthermore, since India is the third-largest oil consumer in the world, rising crude oil prices also hurt the value of the Indian rupee.
However, the optimistic prognosis for domestic stocks and fresh foreign investment inflows could strengthen the value of the local currency. The Reserve Bank of India's (RBI) foreign exchange intervention could limit any notable depreciation of the Indian rupee. The final Gross Domestic Product (GDP) for the fourth quarter (Q4), the US weekly Initial Jobless Claims, and Pending Home Sales are scheduled for release later Thursday.
Despite international indications, the Indian Rupee is still weak.
Over $2 billion worth of Indian shares have been purchased by foreign investors in the last four days, while over $3 billion has been invested in bonds so far this month.
Trump signed an order late Wednesday imposing a 25% vehicle import tariff. Trump also stated that the US will begin collecting the duties the following day, on April 2, when they went into force.
According to Reuters, Trump will provide importers of auto parts a one-month reprieve from his proposed 25% auto tariffs.
The US Census Bureau said Wednesday that US Durable Goods Orders increased by 0.9% in February, down from a 3.3% (revised from 3.1%) increase in January. This number exceeded the market's prediction of a 1% decline.
The pessimistic forecast for USD/INR is still in effect.
Every day, the value of the Indian Rupee declines. The price of the USD/INR pair is still trapped below the important 100-day Exponential Moving Average on the daily period, maintaining the bearish picture. The 14-day Relative Strength Index (RSI), which is below the midline at 36.0 and indicates that the path of least resistance is downward, supports the downward trend.
The low of March 26 at 85.56 is the first level of support for the USD/INR. A decline to 84.84, the low of December 19, and then 84.22, the low of November 25, 2024, might occur if there is persistent bearish pressure below the aforementioned level.
Positively, the pair's primary resistance level is in the 85.95–86.00 range, which stands for the psychological level and the 100-day EMA. The next obstacle to keep an eye on farther north is 86.48, the low recorded on February 21 on the way to 87.00, the round figure.
