- summary:
- The momentum is preferred on the USDINR dollar, as the rupee faces increasing pressure from the increasing outputs despite the RBI interventions.
Usdinr rose on Wednesday, as it was circulated in 87.20 after getting 0.05 % at the time of this report. Indian rupee is under pressure to increase demand for import of the dollar and the height of foreign institutional flows from stock markets. Meanwhile, the US dollar stands up, but the upward trend is limited due to concerns about the American economy path.
The data published on Tuesday shows that the Indian Reserve Bank sold a net 36 billion dollars in the second half of 2024, which helped the rupe to avoid a deeper segment. However, the intervention policy is likely to feel an increase in pressure as pressure is escalated from foreign institutional flows. The latest data shows that foreign investors have a net of 15 billion dollars, and the trend is likely to continue in the foreseeable future.
The Consumer Prices Index in India (CPI) will be displayed on Wednesday and can provide evidence of RBI monetary status for the second quarter of the year. Meanwhile, crude oil prices show signs of recovery after they drop to six months earlier in the week. The expanded decrease in the price of the commodity helped reduce the upward trend.
However, Russian Deputy Prime Minister Alexander Novak said on Friday that OPEC Cartel could reflect a previous decision to increase production in April due to market imbalances. Oil prices may rise in the coming weeks if oil producers continue to this step, adding pressure to the rupee.
Usdinr prediction
Usdinr Pivots in 87.10 and momentum signals that are likely to prevail over this level. The currency pair is likely to fulfill the first resistance at 87.24. However, the expanded control by buyers will break this level and potentially test 87.36
On the other hand, the momentum is likely to turn to the negative side if the price is less than 87.10. This support is likely to be seen at 87.00. The bullish direction would be invalid if the price is less than this level. The resulting momentum can extend the second support level at 86.88.
