Foreign Exchange_Forex Market_Forex Trading_Forex Investment - mydayfinance.com
  • Central Bank
    • BOC
    • BOE
    • BOJ
    • ECB
    • FED
    • PBOC
    • RBA
    • UBS
  • Currency
    • AUD
    • CAD
    • CHF
    • CNY
    • EUR
    • GBP
    • INR
    • JPY
    • RUB
    • SGD
    • USD
  • Foreign Exchange Rate
    • AUD exchange rate
    • CAD exchange rate
    • CHF exchange rate
    • EUR exchange rate
    • GBP exchange rate
    • RMB exchange rate
    • YEN exchange rate
  • Knowledge
  • News
No Result
View All Result
  • Central Bank
    • BOC
    • BOE
    • BOJ
    • ECB
    • FED
    • PBOC
    • RBA
    • UBS
  • Currency
    • AUD
    • CAD
    • CHF
    • CNY
    • EUR
    • GBP
    • INR
    • JPY
    • RUB
    • SGD
    • USD
  • Foreign Exchange Rate
    • AUD exchange rate
    • CAD exchange rate
    • CHF exchange rate
    • EUR exchange rate
    • GBP exchange rate
    • RMB exchange rate
    • YEN exchange rate
  • Knowledge
  • News
No Result
View All Result
Foreign Exchange_Forex Market_Forex Trading_Forex Investment - mydayfinance.com
No Result
View All Result
ADVERTISEMENT

USD/INR struggles as Indian Rupee holds on to gains on possible RBI intervention

Elena by Elena
07/05/2025
in Central Bank
blank
ADVERTISEMENT

The Indian Rupee (INR) gained ground during Wednesday’s Asian trading session, with the USD/INR pair depreciating despite rising geopolitical tensions between India and Pakistan. Currency expert Dhiraj Nim from ANZ Bank suggested that the Reserve Bank of India (RBI) might intervene aggressively if market conditions become highly volatile.

This follows India’s military action under “Operation Sindoor,” which targeted nine sites in Pakistan and Pakistan-administered Kashmir. The operation was in response to a deadly militant attack on tourists in Indian-administered Kashmir on April 22, which killed 25 Indians and one Nepali national. Pakistan condemned the strikes, calling them “unprovoked” and vowing retaliation, raising concerns of escalating tensions.

The Indian Rupee has also benefited from domestic economic factors, including relatively strong performance in India’s assets and limited capital outflows. The country’s low reliance on exports has shielded it from the impact of aggressive US tariffs. Meanwhile, increased oil output from OPEC+ and weakening US growth concerns have helped lower crude and fuel prices, reducing India’s import costs.

ADVERTISEMENT

Data released recently showed that India’s inflation rate dropped to its lowest level in more than five years in March, falling below the RBI’s 4% mid-point target. However, GDP growth slowed to 6.5% in the last fiscal year, down from 8.2% previously, prompting the central bank to prioritize economic growth over inflation control.

ADVERTISEMENT
ADVERTISEMENT

Despite these supportive factors, the USD/INR pair has risen, driven by importer hedging demand and expectations of dollar-buying interventions by the RBI, which is expected to continue bolstering its foreign exchange reserves.

US Dollar Strengthens Ahead of Federal Reserve Decision

The US Dollar (USD) has strengthened as traders remain cautious ahead of the Federal Reserve’s interest rate decision later today. The Fed is widely expected to leave rates unchanged, but attention will be focused on comments from Chair Jerome Powell, particularly regarding future rate cuts and the broader economic outlook amid trade-related uncertainties.

Additionally, the US Dollar has benefited from recent strong US economic data. The ISM Services PMI for April rose to 51.6, beating expectations, while the New Orders Index and the Services Employment Index also showed strength, supporting the USD.

In geopolitical developments, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are set to meet with Chinese Vice Premier He Lifeng in Geneva over the weekend. This marks the first high-level talks since the US imposed tariffs, which had escalated tensions in the global trade landscape. China has agreed to engage in negotiations, further improving risk sentiment.

Meanwhile, India is preparing for a nationwide mock drill on Wednesday, testing air-raid sirens and evacuation procedures in response to heightened tensions with Pakistan. This drill, the first of its kind since 1971, reflects the growing security concerns in the region following the April 22 terror attack.

USD/INR Faces Technical Resistance and Support

From a technical perspective, the USD/INR pair is hovering near 84.60, with daily charts showing a continued bearish outlook as the pair remains within a descending channel pattern. Immediate support is located near 84.10, the lower boundary of the channel, and a break below this level could trigger further downside, possibly pushing the pair towards the eight-month low of 83.76.

On the upside, resistance is seen near the nine-day Exponential Moving Average (EMA) around 84.69. A sustained move above this level could spark short-term bullish momentum, potentially targeting the upper boundary of the descending channel near 86.20, with additional resistance at the two-month high of 86.71.

Traders are also monitoring the ongoing RBI bond purchases and geopolitical developments, which could influence the INR’s movements in the coming days.

Related Topics:

  • Is 2000 Rupee Notes Valid in India?
  • Current INR Exchange Rate: 500 Rupees in Euro
  • What is the 5000 Rupee Banknote in India?
Tags: demeekernespinflationiskitlkes
Previous Post

GBP/USD Faces Pressure Amid Modest USD Strength, Eyes Key Support Levels

Next Post

AUD/USD Maintains Upward Momentum Amid Improving Economic Data and Easing Trade Tensions

Elena

Elena

Elena, a seasoned foreign exchange trader with a proven track record in the dynamic world of currency markets, brings a wealth of expertise and professionalism to the financial realm. With an extensive background spanning over a decade, she has honed her skills in analyzing global economic trends and implementing strategic trading solutions. Known for her meticulous attention to detail and analytical prowess, Elena has navigated through volatile market conditions with finesse, consistently delivering impressive results for her clients. Her comprehensive understanding of macroeconomic indicators, coupled with a keen awareness of geopolitical events, allows her to make informed decisions that optimize trading portfolios. Elena's commitment to staying ahead of the curve is evident in her continuous pursuit of knowledge and mastery of cutting-edge trading technologies. Her disciplined approach to risk management ensures prudent investment strategies, instilling confidence in both colleagues and clients alike.

Related Posts

Trump’s Trade Deal Plans Boost Us Stock Futures
News

Trump’s Trade Deal Plans Boost Us Stock Futures

12/05/2025
European Central Bank raises interest rates sharply again Recession may be upon us
News

EUR/USD Slips Amid Stronger Dollar and US-China Trade Deal Hopes

12/05/2025
blank
News

Indian Rupee Slips Amid Geopolitical Tensions and Stronger Dollar

12/05/2025
What is the international monetary system
News

US Dollar Index Slips for Second Day, Tests Key Technical Levels

12/05/2025
blank
Currency

What Money is Best to Use in Thailand?

12/05/2025
What is wave theory? The main principles and analysis methods of wave theory
News

Australian Dollar Rises on Optimism from US-China Trade Talks

12/05/2025
blank
News

Yen Slips to One-Month Low as US-China Trade Optimism Boosts Dollar

12/05/2025
What is the impact of domestic currency depreciation on imports and exports
News

Euro Slips as ECB Signals Rate Cut, US-China Trade Optimism Offers Limited Support

12/05/2025
What Is Currency Exchange for Japanese Yen
Currency

What Is Currency Exchange for Japanese Yen

12/05/2025
Next Post
Do you know the stages that a forex trader must go through? (2)

AUD/USD Maintains Upward Momentum Amid Improving Economic Data and Easing Trade Tensions

blank

NZD/USD Retreats After Brief Uptick, Weighed Down by Economic Concerns

What is a money market?

USD/JPY Supported by Modest USD Rebound, Fed Decision Looms

Tags

ALL ARS ats bam Bank of Korea bef bob Central Bank of Canada Central Bank of Russia cop cup dem Digital Currency Digital RMB Dollar Index dop eek energy crisis ern esp etb Fed rate hike financial markets forex trading gel ghs huf ils IMF inflation inr interest rates irr isk itl kes lak lyd monetary policy mop mro mur myr Raise Interest Rates Swiss National Bank

Recent Posts

Trump’s Trade Deal Plans Boost Us Stock Futures
News

Trump’s Trade Deal Plans Boost Us Stock Futures

by changzheng48
12/05/2025

U.S. stock futures point to a higher open after President Donald Trump said in a social media post he planned...

European Central Bank raises interest rates sharply again Recession may be upon us

EUR/USD Slips Amid Stronger Dollar and US-China Trade Deal Hopes

12/05/2025
blank

Indian Rupee Slips Amid Geopolitical Tensions and Stronger Dollar

12/05/2025
What is the international monetary system

US Dollar Index Slips for Second Day, Tests Key Technical Levels

12/05/2025
blank

What Money is Best to Use in Thailand?

12/05/2025
What is wave theory? The main principles and analysis methods of wave theory

Australian Dollar Rises on Optimism from US-China Trade Talks

12/05/2025
blank

Yen Slips to One-Month Low as US-China Trade Optimism Boosts Dollar

12/05/2025
What is the impact of domestic currency depreciation on imports and exports

Euro Slips as ECB Signals Rate Cut, US-China Trade Optimism Offers Limited Support

12/05/2025

News

Trump’s Trade Deal Plans Boost Us Stock Futures

Trump’s Trade Deal Plans Boost Us Stock Futures

12/05/2025
European Central Bank raises interest rates sharply again Recession may be upon us

EUR/USD Slips Amid Stronger Dollar and US-China Trade Deal Hopes

12/05/2025
blank

Indian Rupee Slips Amid Geopolitical Tensions and Stronger Dollar

12/05/2025
What is the international monetary system

US Dollar Index Slips for Second Day, Tests Key Technical Levels

12/05/2025
What is wave theory? The main principles and analysis methods of wave theory

Australian Dollar Rises on Optimism from US-China Trade Talks

12/05/2025
blank

Yen Slips to One-Month Low as US-China Trade Optimism Boosts Dollar

12/05/2025
Foreign Exchange_Forex Market_Forex Trading_Forex Investment - mydayfinance.com

MydayFinance (www.mydayfinance.com) is a comprehensive foreign exchange industry website, providing global users with 24-hour comprehensive and timely foreign exchange market information, foreign exchange rate real-time query, foreign exchange rate conversion and other content.【Contact us: [email protected]】

Recent Posts

  • Trump’s Trade Deal Plans Boost Us Stock Futures 12/05/2025
  • EUR/USD Slips Amid Stronger Dollar and US-China Trade Deal Hopes 12/05/2025
  • Indian Rupee Slips Amid Geopolitical Tensions and Stronger Dollar 12/05/2025
  • US Dollar Index Slips for Second Day, Tests Key Technical Levels 12/05/2025
  • What Money is Best to Use in Thailand? 12/05/2025

Tags

ARS ats Bank of Korea bam bef bhd bob Central Bank of Brazil CAD to CNY Central Bank of Canada Central Bank of Russia CHF to CNY cop cup dem Digital Currency Dollar Index dop eek ern esp financial markets forex trading gel ghs

Useful Links

Home

ABOUT US

Disclaimer

Privacy Policy

Article sitemap

Forex Trading Tips

Copyright © 2024 mydayfinance.com

No Result
View All Result
  • Home
  • Central Bank
  • Currency
  • Foreign Exchange Rate
  • News

Copyright © 2024 mydayfinance.com MydayFinance (www.mydayfinance.com) is a comprehensive foreign exchange industry website, providing global users with 24-hour comprehensive and timely foreign exchange market information, foreign exchange rate real-time query, foreign exchange rate conversion and other content.