- Indian rupee weakens in Wednesday’s Asian session.
- Terrorist attacks in Kashmir weigh on the feeling and undermine the INR, but the continuous entry of foreign funds could limit their fall.
- The preliminary readings of the PMI of HSBC of India and the PMI of the US S&P global will be the center of attention later on Wednesday.
Indian rupee (INR) goes back on Wednesday because the increase in crude oil prices and a renewed demand from the US dollar (USD) weigh on feeling and drag the india currency down. The terrorist attack in Kashmir, India, contributes to the fall of the INR. At least 28 people died and many were injured on Tuesday when the terrorists opened fire in a picturesque Prado near Pahalgam’s tourist city in J&K, marking the deadliest attack since 2019.
However, possible capital tickets in local shares could help limit INR losses. The preliminary reading of the Indian HSBC Purchase Manager Index (PMI) for April will be published later on Wednesday. On the US Agenda, the preliminary report of the Global S&P PMI will be the culminating point.
Indian rupee is still weak in the middle of global commercial uncertainty
- The Prime Minister of India, Narendra Modi, will shorten his visit to Saudi Arabia after the deadly terrorist attack on tourists in Pahalgam, Jammu and Kashmira, Fuentes said Tuesday. Modi is expected to leave Yeda tonight and arrive in India early on Wednesday morning, given the 2.5 -hour schedule.
- Mumbai has become the main destination for investments in real estate capital in India, attracting 6,900 million dollars between the 2022 and 2024 calendar years, according to Cbre South Asia PVT. Ltd. and the Confederation of the Indian Industry (CII).
- The White House said Tuesday that the Trump administration was advancing in the negotiations of trade agreements aimed at reducing the wide tariffs he announced earlier this month.
- The US press secretary, Karoline Leavitt, said that 18 different countries have presented commercial offers to the US and that Trump’s commercial team was meeting with 34 countries this week to discuss possible agreements.
- The governor of the Board of the Federal Reserve, Adriana Kugler, said Tuesday night that, since US import tariffs are significantly higher than expected and probably exert upward pressure on prices, the US Central Bank should maintain stable short -term indebted costs until inflation risks decrease.
- Monetary market operators have incorporated 91 basic points (PB) of Fed features for the end of 2025, with the first expected cut in July, according to the CME Fedwatch tool.
The bassist bias of the USD/INR prevails below the 100 -day EMA
Indian rupee quotes in a weaker tone in the day. The long -term bassist trend of the USD/INR is still in force, with the price being below the average exponential (EMA) medium key of 100 days in the daily chart. The downward impulse is backed by the 14 -day relative force (RSI) index, which is below the midline about 37.25.
The area of 85.00-84.90 acts as a key support level for the USD/INR, representing the psychological level and lower limit of the descending trend channel. A rupture of this level could drag the downward price to 84.53, the minimum of December 6, 2024. The next level of containment to be observed is 84.22, the minimum of November 25, 2024.
In the upward case, the first upward barrier appears at 85.85, the 100 -day EMA. If the impulse accelerates, the bulls could point to 86.45, the upper limit of the trend channel.
India Faqs Rupia
Indian rupee (INR) is one of the most sensitive currencies to external factors. The price of crude oil (the country depends largely on imported oil), the value of the US dollar (most of the trade is carried out in US dollars) and the level of foreign investment are all influential factors. The direct intervention of the Bank of the Reserve of India (RBI) in the currency markets to keep the exchange rate stable, as well as the level of the interest rates set by the RBI, are other important factors that influence the rupee.
The Bank of the Reserve of India (RBI) actively intervenes in the currency markets to maintain a stable exchange rate and help facilitate trade. In addition, the RBI tries to maintain the inflation rate in its 4% target adjusting interest rates. Higher interest rates often strengthen rupee. This is due to the role of the “Carry Trade”, in which investors borrow in countries with lower interest rates to place their money in countries that offer relatively higher interest rates and benefit from difference.
Macroeconomic factors that influence the value of rupee include inflation, interest rates, economic growth rate (GDP), trade balance and foreign investment tickets. A higher growth rate can lead to greater investment abroad, increasing the demand for rupee. A less negative trade balance will eventually lead to a stronger rupee. The highest interest rates, especially real types (less inflation interest rates) are also positive for rupee. A risk environment can generate higher direct and indirect foreign investment entries (FI and FII), which also benefit the rupee.
Higher inflation, particularly if it is comparatively higher than other countries, is generally negative for the currency, since it reflects a devaluation through excess supply. Inflation also increases the cost of exports, which leads to more rupees to buy foreign imports, which is negative for Indian rupee. At the same time, higher inflation usually leads to the Bank of the Reserve of India (RBI) to raise interest rates and this can be positive for rupee, due to the increase in demand for international investors. The opposite effect applies to lower inflation.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
