- Indian rupee weakens in the early European session on Tuesday.
- The continuous demand for the US dollar and the flow of foreign funds unabated is weighed on INR.
- Indian inflation reports and the United States will take the lead of the lead center on Wednesday.
The Indian rupee (INR) extends on Tuesday, as the strong demand for US dollar (US dollar) was pressured by importers. Interest in the NDF is also practicing some pressure on the local currency that has been struck by foreign funds sales of local shares since late September. The uncertainty caused by the tariff policy of US President Donald Trump may affect emerging market currencies such as INR.
However, any significant decrease in the local currency may be limited due to the foreign exchange intervention of the Indian Reserve Bank (RBI). Moreover, low crude oil prices may help reduce INR because India is the third largest oil consumer in the world.
In the absence of higher economic data from the United States and India on Tuesday, the US dollar pair/INR will be led by Greenback. Inflation reports in the Indian and United States price index (CPI) for February will be the prominent points on Wednesday.
Indian rupee relieves the amid wallet flows and global factors
- A trader in a private bank said: “He weakened the rupee due to the increased demand for the dollar from oil companies, as Indian companies have begun to buy oil from the United States.”
- Foreign investors have withdrawn nearly $ 15 billion from Indian stocks so far this year, as they put external flows on the right track to exceed the record number $ 17 billion registered in 2022. Selloff has wiped $ 1.3 trillion of the market value of India.
- On Sunday, Trump refused to predict whether the United States would face stagnation amid stock market fears about his introductory actions on Mexico, Canada and China.
- Non -agricultural salaries in the United States (NFP) came weaker than expectation, increasing by 151,000 in February compared to 125,000 precedents (revised from 143K). Meanwhile, the unemployment rate increased to 4.1 % in February 4.0 % in January.
- Federal Reserve Chairman Jerome Powell said on Friday that the US Central Bank can remain patient in setting the standard interest rate, noting the uncertainty about the potential impact of Trump’s policies.
- Lseg data showed that traders now hear at 75 basis points (BPS) of discounts from the Federal Reserve this year, with a full price reduction in June.
Usd/INR retains its long -term bias
Indian rupee weakens a day. The bullish bias of the US dollar pair/INR remains intact, with a price higher than the SIA moving average for 100 days (EMA) on the daily chart. The least resistant path is the bullish direction where the 24 -day relativity index (RSI) stands over the midfield near 60.0.
The first ups of the USD/INR will appear at 87.53, which is the highest level on February 28. Potential upscarfs can be seen at the above level at all near 88.00, on its way to 88.50.
In the declining event, the initial support level is located in 86.86, which is the lowest level on March 6. Any sale of a follower can attract some of the sale pressure to 86.48, which is the lowest level on February 21, followed by 86.14, which is the lowest level on January 27.