- The Indian rupee is still stable, as it hovers the USD/INR near the lowest level in seven weeks of 86.20.
- Inr faces the possible opposite winds from the high prices of crude oil amid continuous geopolitical tensions in the Middle East.
- The US dollar is strengthened as risk risk is high due to concerns about customs tariff policies.
The Indian Rupee (INR) is still stable against the US dollar (the US dollar) during the Asian trading hours on Friday, where the USD/INR was registered near the lowest level in seven weeks from 86.20, on Thursday. However, the additional negative aspect of the husband may be limited as Greenback is gaining power amid the high risk of concerns about the US tariff policies.
Inr also faces potential opposite winds of high crude oil prices amid continuous geopolitical geopolitical tensions in the Middle East, as India, the third largest oil consumer in the world, is still sensitive to energy costs. Israel launched a new ground operation in Gaza, breaking the ceasefire for two months, while the United States continues air strikes against the Iranian -backed Houthi rebels in Yemen.
On Thursday, Indian stocks supported expectations that high liquidity and comfortable financial conditions will support economic growth. Technology shares led the assembly, keeping the congruent copies in the American market, while bank shares maintained their upward momentum this month, with the support of the slowdown, allowing the Indian Reserve Bank (RBI) to adopt a more absorbing position towards the Indian rupee.
RBI recently implemented the first interest in almost five years, as it is in line with the market expectations. As liquidity fears continue in the Indian financial system, the central bank is expected to continue to reduce growth support. GDP in India expanded by 6.5 % in the current fiscal year, a decrease from 8.2 % in the previous period.
It can be estimated at the Indian rupee, where the US dollar is struggling amid low bond returns
- The US dollar index (DXY), which measures the dollar for six major currencies, is trading above 103.90. However, the US dollar may face challenges with the decrease in American bond returns, as investors seek safety in treasury bonds amid economic uncertainty.
- Jerome Powell’s head of the Federal Reserve (Fed) reduced the inflationary effect of definitions, and he temporarily described him, but he recognized the challenges in assessing the wider effects. While the recession risk increased, Powell suggested that she remains relatively low at the present time.
- The unemployed demands in the United States increased to 223 thousand for the week ending on March 15, which are slightly missing estimates from 224 thousand and exceeding the revised number in the previous week of 221 km (from 220 km). In addition, the Philadelphia manufacturing survey in March fell to 12.5 illiterate, a decrease on February 18. This represents the second monthly decrease in a row, although the decline was less severe than expected 8.5.
- US President Donald Trump urged Federal Reserve (Fed) to drop interest rates, noting the economic impact of definitions. Trump has published on the social truth platform that the Federal Reserve will be better to reduce interest rates as American definitions begin in the economy. He added: “Do the right thing”, “April 2 is the liberation day in America!”
- The Reserve Bank in India is likely to accommodate “opportunities” to the flows of dollars in recent sessions, and perhaps rebuilding foreign currency reserves used to support INR in recent months, according to reports.
- The return on the Indian G-CC decreased for 10 years to 6.68 %, its lowest level in three years, with the growth expectations for low interest rates. RBI recently implemented the first interest in more than four years, with less than expected in February enhancing the prospects for more mitigation this year.
Technical Analysis: The dollar/INR can test a nine -week drop near 86.00
The Indian Ruphric (INR) is still stable, as the US dollar pair/INR is trading around 86.30 during the Asian hours on Friday. The technical analysis of the daily plan indicates the promotion of the declining bias, as the husband remains within the descending canal style. In addition, the relative strength index is placed for 14 days (RSI) slightly higher than a mark, which enhances the hybrid view. A break less than 30 can indicate a traffic condition, which may lead to ascending correction.
The US dollar pair/INR can find immediate support at a low level for nine weeks from 86.14, registered on January 13, followed by the lower border of the concession channel near the psychological level of 86.00.
In the upscale direction, the Si -moving average can be for nine days (EMA) at 86.57 as an initial barrier. A break above this level can improve the short -term price momentum and support the US dollar pair/INR to explore the area surrounding the upper border of the descending canal near the level of 87.10.
USD/Inr: Daily chart
Indian rupee questions and answers
Indian rupee (INR) is one of the most sensitive currencies for external factors. The price of crude oil (the country depends greatly on imported oil), and the value of the US dollar – most trade in US dollars – and the level of foreign investment are all influential. The direct intervention by the Indian Reserve Bank (RBI) in the foreign currency markets to maintain the exchange rate is stable, as well as the level of interest rates that RBI has placed, significant impressive factors in the rupee.
The Indian Reserve Bank (RBI) is actively interfering in the Forex markets to maintain a stable exchange rate, to help facilitate trade. In addition, RBI tries to keep the inflation rate in its goal by 4 % by setting interest rates. High interest rates usually enhance rupee. This is due to the role of “Trade Trade” in which investors in countries that have lower interest rates are borrowed in order to put their money in countries “that provide relatively higher interest rates and profit from the teams.
The total economic factors that affect the value of rupees include inflation, interest rates, economic growth rate (gross domestic product), trade balance, and flows from foreign investment. A higher growth rate can lead to more investment abroad, which increases the demand for rupee. The less negative trade balance will eventually lead to a stronger rupee. High interest rates, especially real prices (less inflationary interest rates) are also positive for rupee. The risk environment can lead to increased direct and indirect foreign investment flows (FDI and FII), which also benefits rupee.
The highest inflation, in particular, if it is relatively higher than its peers in India, is generally negative for the currency because it reflects the reduction in the value of the currency. Inflation also increases the cost of exports, which sells more rupees to buy foreign imports, which is negative rupee. At the same time, high inflation usually raises the Indian Reserve Bank (RBI) interest rates, and this may be positive for rupee, due to increased demand from international investors. The opposite effect applies to low inflation.
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