- Indian rupee is gaining traction in the Asian session on Monday.
- The US dollar supports the weakest on a large scale, but the high crude oil prices may achieve its gains.
- Investors are preparing to enlarge WPI in February in India and retail sales data in the United States, which is scheduled later on Monday.
Indian rupee (INR) is strengthened on Monday. Fears about slowing growth in the US economy about US President Donald Trump’s management policies weighing to green and providing some support to the Democratic Union of Communications. However, the bullish trend of the local currency may be limited amid high crude oil prices. It should be noted that India is the third largest oil consumer in the world and the rise in crude oil prices until it has a negative impact on the value of INR.
In the future, inflation will be released in the wholesaler index in India in February later on Monday. On Docket in the United States, retail sales data for February will provide signals on the morale of American consumer and whether the uncertainty in politics has prompted the slowdown in spending. Investors will closely see the interest rate decision in the Federal Reserve (Fed) on Wednesday, which is expected to maintain interest rates unchanged. The primary focus will be on the FBI policy guidelines.
Indian rupee rises above the multiple opposite winds
- Dilip Parrin, an foreign exchange analyst at HDFC Securities, said that the Indian rupee is likely to face a strong resistance of about 86.50 while the support is found in the 87.40-50-50.
- India’s economic indicators for the month of February reflect the moderation in inflation, improving industrial product and strong companies’ profits, according to the latest SBI ECOWRAP report.
- Morgan Stanley said that India is the third largest economy in the world by 2028 because it becomes the most desirable market in the world and gains in global production, driven by total stability that affects the best policy and infrastructure.
- The initial reading of the Michigan University Consumer Marketing Index showed that the index has reached its lowest level since November 2022, as it decreased to 57.9 of 64.7 in the previous reading. This reading came in the consensus of the market 63.1.
- Consumer inflation forecast for five years jumped to 3.9 % in March, compared to 3.5 % in February.
- The markets are widely expected that the Federal Reserve will remain in a suspension when its meeting will be concluded for two days on Wednesday. The markets are approximately 75 % of the possibilities of a quarter of a point reduction to the price of the policy by June, according to the CME Fedwatch tool.
The dollar remains covered in a similar triangle
Indian rupee trading stronger a day. The US dollar pair/INR was unified near the minimum similar triangle on the daily chart. The constructive view of the husband remains in place, with a higher price of the SIA moving average for 100 days (EMA). However, more monotheism can not be excluded as the 24 -day relative indicator stands over the midfield, indicating the neutral momentum in the short term.
The immediate resistance level of USD/INR appears at 87.24, the upper limits of a similar triangle. The constant profit above this level can pave the way to 87.53, the highest level on February 28, on its way to its highest level ever, which is 88.00.
On the other hand, it can offer a decisive break less than March 6 and the minimum triangle style at 86.86 86.48, which is the lowest level on February 21. South, the additional negative side to see 86.14, the lowest level on January 27.
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