Usdinr Under Pressure

last updated on

Usdinr Under Pressure

Usd/Inr Under Pressure, Wpi Jumps To 1.84%

USD/INR is now on the rise again on Monday and has already recovered some of its lost ground. Earlier, the pair had sunk to all-time lows but the situation has now changed.

India's WPI was also recently released, which shows a reading of 1.84% y/y during September. The previous reading was 1.31% which shows a rise in the WPI inflation.

Wpi Inflation Below Forecast In September

The WPI inflation has gone up, but it is still below the forecast of 1.90%, based on the official data. As of now, the INR is trading with a little bit of gains despite the recent inflation report.

Amidst all of this, the oil prices have also seen some spikes due to geopolitical tensions. At the same time, foreign investors are now exiting the equity market. Meanwhile, the demand for greenback is at an all-time high in India, which is putting pressure on the INR.

However, the RBI is highly likely to intervene in the currency markets to prop up the INR. That's why it is safe to assume that the INR downside will remain limited.

Right now, the INR will be green on Monday, and the USD/INR outlook is also positive. The USD/INR is trading above the 100 EMA as well as a bullish trendline.

The RSI also shows a reading of 64, a sign that the USD/INR is under the influence of buyers. However, it is essential to note that the upside in INR is less due to the market participants and more due to the RBI.

On the way up, the first resistance for the USD/INR is around 84.15, followed by the key level at 84.50. On the other hand, the first support is at 83.90, followed by the next one at 83.69. The next one is near 83.00, which is also a key level from the 24th of May.

Overall, the USD/INR appears to be strong right now, but the INR losses will remain capped due to the RBI.

Trending Stories