By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Gulf PressGulf Press
  • Home
  • Gulf News
    • Saudi Arabia
    • UAE24/7
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • World
  • Business
    • Market DataLive
    • Finance
    • Economy
    • Energy
    • Crypto
    • ForexHot
    • Tech
  • Sports
  • Lifestyle
  • Videos
Search
Countries
  • Saudi Arabia
  • UAE
  • Kuwait
  • Qatar
  • Bahrain
  • Oman
More Topics
  • Technology
  • Health
  • Entertainment
  • Crypto
  • Forex
  • Stocks
Site Links
  • Business Hub
  • Trending
  • Weather
  • Customize Interests
  • Bookmarks
  • Newsletter
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Reading: USD/INR stays strong before US PMI data is released
Share
Notification Show More
Latest News
Barcelona Aims to Recover from European Heartbreak as They Face Real Madrid in La Liga, Chasing Their Third Title of the Season
Sports
UAE with 47% and Qatar with 36% Surge in Viewing Minutes as TOD Unveils its Enhanced Streaming Experience TOD 2.0
Lifestyle
L’Oréal Paris Celebrates the Groundbreaking Launch of MELASYL at the Iconic Museum of the Future
Lifestyle
TOD Partners with Skyworth’s QVWi to Launch 4K Streaming Set-Top Box in MENA
Gulf Sports
Double victory at Red Dot: Eczacıbaşı Tiles Group’s VitrA and Villeroy & Boch brands recognised for their design excellence
Lifestyle
Aa
Gulf PressGulf Press
Aa
  • Gulf News
  • World
  • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Videos
Search
  • Home
    • Videos
    • Business Hub
    • Trending
  • Gulf
    • Saudi Arabia
    • UAE
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • Business
    • Market Data
    • Crypto
    • Economy
    • Energy
    • Finance
    • Forex
    • Tech
  • More News
    • World
    • Lifestyle
    • Entertainment
    • Sports
Have an existing account? Sign In
Follow US
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Gulf Press > Business > Forex > USD/INR stays strong before US PMI data is released
Forex

USD/INR stays strong before US PMI data is released

News Room
Last updated: 2025/01/03 at 6:07 AM
News Room
Share
4 Min Read
SHARE

The Indian Rupee is facing heightened pressure due to ongoing USD strength and concerns about India’s economic slowdown. This has led to the Rupee weakening for the eighth consecutive session, with the USD demand widening the arbitrage with the Indian onshore market. Factors such as a discouraging growth rate in India, a wider trade deficit, and a slowdown in capital inflows have contributed to the Rupee’s downside. However, the Reserve Bank of India (RBI) could intervene by selling USD to provide short-term relief for the Rupee. Traders are closely monitoring the US December ISM Manufacturing Purchasing Managers Index (PMI) and a speech by the Federal Reserve Bank of Richmond’s President Thomas Barkin for further direction.

Despite RBI intervention, the Indian Rupee is likely to experience slight depreciation in 2025, driven by volatile foreign portfolio investment flows and a potentially stronger US dollar. State-run banks have been observed selling USD in significant amounts, while the Indian HSBC Manufacturing PMI hit a 2024 low in December. This weaker figure indicates a slowing trend in the industrial sector, with new orders expanding at their slowest rate in the year. On the other hand, the US Initial Jobless Claims for the past week saw a decline, which was below market expectations.

In terms of technical analysis, the USD/INR pair continues to trade with a negative bias, with an overbought RSI warranting caution for bulls. The pair remains in an uptrend, holding above the key 100-day Exponential Moving Average (EMA). However, the RSI indicates an overbought condition, suggesting a potential for further consolidation before any near-term appreciation. The first upside barrier for USD/INR is at the all-time high of 85.81, with a break above this level likely leading to the 86.00 psychological mark. On the downside, support levels are at 85.54, 85.00, and the 100-day EMA at 84.40.

The Reserve Bank of India (RBI) plays a crucial role in maintaining price stability and promoting economic growth. The RBI meets bi-monthly to discuss monetary policy and adjusts interest rates as needed to control inflation rates. When inflation is high, the RBI raises interest rates to curb spending, which can support the Rupee. Conversely, if inflation falls below target levels, rate cuts may be implemented to encourage lending, which could have a negative impact on the Rupee. Additionally, the RBI actively intervenes in the foreign exchange markets to keep the exchange rate stable and protect importers and exporters from currency risks during periods of volatility.

In conclusion, the Indian Rupee is facing downward pressure due to various domestic and global factors, including USD strength and concerns about India’s economic growth. While the RBI may intervene to provide temporary relief, the Rupee is expected to experience slight depreciation in the future. Traders are closely monitoring key economic indicators and speeches for further clarity on the Rupee’s direction. Additionally, the RBI’s role in maintaining price stability and exchange rate predictability is essential for the overall health of India’s economy.

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
I have read and agree to the terms & conditions
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
News Room January 3, 2025
Share this Article
Facebook Twitter Copy Link Print
Previous Article HIA issues advisory to ensure smooth airport experience for arriving passengers
Next Article Indian Prime Minister Modi praises ONDC for empowering small businesses and transforming e-commerce.
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

235.3k Followers Like
69.1k Followers Follow
56.4k Followers Follow
136k Subscribers Subscribe
- Advertisement -
Ad imageAd image

Latest News

Barcelona Aims to Recover from European Heartbreak as They Face Real Madrid in La Liga, Chasing Their Third Title of the Season
Sports May 8, 2025
UAE with 47% and Qatar with 36% Surge in Viewing Minutes as TOD Unveils its Enhanced Streaming Experience TOD 2.0
Lifestyle May 5, 2025
L’Oréal Paris Celebrates the Groundbreaking Launch of MELASYL at the Iconic Museum of the Future
Lifestyle May 5, 2025
TOD Partners with Skyworth’s QVWi to Launch 4K Streaming Set-Top Box in MENA
Gulf Sports May 1, 2025

You Might also Like

Forex

Pound Sterling Price Update and Prediction: GBP strengthens as risk sentiment improves

January 6, 2025
Forex

Elliott Wave Technical Analysis of NVIDIA Corp. (NVDA) [Video]

January 6, 2025
Forex

EUR/USD: Is it a Dead Cat Bounce? – OCBC

January 6, 2025
Forex

AUD/JPY maintains gains around 98.50 following PMI data release

January 6, 2025
Forex

NZD/USD edges up to nearly 0.5650 after China’s Caixin Services PMI

January 6, 2025
Forex

Japanese Yen bulls stay on the sidelines as USD/JPY remains steady above the mid-157.00s

January 6, 2025
Forex

Silver Price Prediction: XAG/USD bears in control below $30.00 near 200-day SMA

January 6, 2025
Forex

Gold price drops from multi-week high due to hawkish Fed expectations

January 6, 2025
//

Gulf Press is your one-stop website for the latest news and updates about Arabian Gulf and the world, follow us now to get the news that matters to you.

Quick Link

  • Privacy Policy
  • Terms of ue
  • Advertise
  • Contact

How Topics

  • Gulf News
  • International
  • Business
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our latest news instantly!

I have read and agree to the terms & conditions
Gulf PressGulf Press
Follow US

© 2023 Gulf Press. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

I have read and agree to the terms & conditions
Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?