USD/INR advances the release of retail sales in the United States, Powell’s Fed’s Powell speech
- Indian rupee brings strength in the first European session on Wednesday.
- The US dollar continues the most softening and declining crude oil prices in Er.
- The March March retail report and the speech written by the President of the Federal Reserve Powell will be the most prominent events later on Wednesday.
Indian rupee (INR) is trading in a positive area for the fifth consecutive day on Wednesday. Weakening US dollar (USD) and the expanded decrease in raw oil Indian currency losses prices. It should be noted that India is the third largest oil consumer in the world, and it tends to decrease crude oil prices to a positive impact on the value of the Indian currency.
On the other hand, US President Donald Trump said on Monday that he was considering temporary exemptions for drivers on imported cars and spare parts to allow cars in additional time to create manufacturing operations in the United States. However, the tensions between the United States and China escalate, which may affect Asian currencies, including inr.
Looking at the future, investors will monitor US retail sales at March later on Wednesday, which is expected to rise by 1.3 % of my mom in March. Also, Federal Reserve Chairman (Fed) speech Jerome Powell It will be in the spotlight.
Indian rupee rises on the weakest US dollar
- Indian stocks rose with the resumption of trading after an extended weekend, as standard indicators regained all the losses raised by Trump’s mutual definitions earlier this month. The country’s large local economy is seen with a possible global stagnation better than many of their peers, who face a higher tariff.
- The Indian Reserve Bank (RBI) will buy 400 billion rupees ($ 4.67 billion) and will also take 43 days for 1.50 trillion rupees on Thursday per Reuters.
- The consumer price index (CPI) increased by 3.34 % on an annual basis in March, compared to 3.61 % in February, according to the Ministry of Statistics and the implementation of the program. This reading came in the most softening of the expected 3.60 %.
- The ruler of the Federal Reserve, Christopher Waller, said on Monday that the Trump tariff policies were a great shock to the US economy, which could lead the central bank to reduce prices to calm the recession even if inflation remains high.
- The president of the Bank of Atlanta Bank, Rafael Bustic, said that the uncertainty surrounding the Trump administration tariffs and other policies have put the economy in a “great stop”, and suggested that the Federal Reserve remains at greater alert until there is more clarity.
- Market pricing is now in nearly 85 BPS basis points of monetary policy that reduces the end of the year, as most of them expect the Federal Reserve to keep next month, according to the CME Fedwatch tool.
The dollar is resuming its negative journey below EMA for 100 days
Indian rupee trading stronger a day. The USD/INR pair resumes his passive side, as the husband crosses less than 100 days moving average (EMA) on the daily time frame. The declining momentum is supported by the 14 -day relative index (RSI), which is located below the midfield near 42.60, indicating that the long -term declining bias has not yet ended.
Initial support level for USD/Inr It is located in 85.48, which is the lowest level on March 24. To the south, the level of the next dispute to watch is 85.20, which is the lowest level on April 3, followed by 84.95, the lowest level on April 3.
In the upscale case, the area of 85.90-86.00 works as an immediate resistance level for the husband, which represents EMA for 100 days and the psychological level. Al -Shaman can see the bullish and consistent trading above the aforementioned level to 86.61, the highest level on April 10.
Indian rupee questions and answers
Indian rupee (INR) is one of the most sensitive currencies for external factors. The price of crude oil (the country depends greatly on imported oil), and the value of the US dollar – most trade in US dollars – and the level of foreign investment are all influential. The direct intervention by the Indian Reserve Bank (RBI) in the foreign currency markets to maintain the exchange rate is stable, as well as the level of interest rates that RBI has placed, significant impressive factors in the rupee.
The Indian Reserve Bank (RBI) is actively interfering in the Forex markets to maintain a stable exchange rate, to help facilitate trade. In addition, RBI tries to keep the inflation rate in its goal by 4 % by setting interest rates. High interest rates usually enhance rupee. This is due to the role of “Trade Trade” in which investors in countries that have lower interest rates are borrowed in order to put their money in countries “that provide relatively higher interest rates and profit from the teams.
The total economic factors that affect the value of rupees include inflation, interest rates, economic growth rate (gross domestic product), trade balance, and flows from foreign investment. A higher growth rate can lead to more investment abroad, which increases the demand for rupee. The less negative trade balance will eventually lead to a stronger rupee. High interest rates, especially real prices (less inflationary interest rates) are also positive for rupee. The risk environment can lead to increased direct and indirect foreign investment flows (FDI and FII), which also benefits rupee.
The highest inflation, in particular, if it is relatively higher than its peers in India, is generally negative for the currency because it reflects the reduction in the value of the currency. Inflation also increases the cost of exports, which sells more rupees to buy foreign imports, which is negative rupee. At the same time, high inflation usually raises the Indian Reserve Bank (RBI) interest rates, and this may be positive for rupee, due to increased demand from international investors. The opposite effect applies to low inflation.
