Usdinr Moves Lower

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Usdinr Moves Lower

Usd/Inr Moves Lower On Dollar Weakness

The USD/INR pair continues to move lower amid a weakness in the US Dollar (USD). As of now, INR is sitting at 2-month highs, which means a 2-month low for the USD/INR.

The upside in the INR is due to the strength of the CNY and the improved portfolio inflows. Also, the Fed's rate cut is a big factor that has allowed the INR to gain the upper hand.

Usd Selling Supports The Inr

Another factor behind the upside of the INR is that foreign banks are selling the USD on behalf of their clients. This has also allowed the local currency to gain the upper hand.

However, Crude Oil prices are rising once again, which could put pressure on the INR. After all, India is the 3rd largest consumer of Oil after the US and China. So, a higher price means India will have to spend more money buying Oil.

As of now, India's foreign exchange reserves are $689.23 billion. In 2024, this number has grown by $66 billion, which shows that India has a lot of headroom to keep the INR strong.

The Indian Government also supports the INR by selling the US Dollar in the local market. Although this takes a hit at the foreign reserves, the government does it to keep inflation under control.

The bottom line is that INR is stronger than the US Dollar. However, once the rate cut rally ends, the US Dollar will make a comeback again.

The nearest support for the USD/INR is around 83.50, while the next one is seen at 83.00. On the other hand, the first resistance is 83.64, whereas the 100 EMA on the D1 chart is present. After that, the 83.75 is also equally important as that's the lower line of the rectangle pattern.

On the way up, the first barrier for the USD/INR will be around 83.90 to 84.00. If the Crude Oil prices rises in the next few months, there's a good chance that USD/INR will start its uptrend once again.

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