- Indian Rupee is strengthening the Asian session of Tuesday.
- Optimizing US-Indian trade talks and stable foreign portfolio investment inflows in equities supports INR.
- Investors are waiting for the US April Consumer Confidence and March Jolts Job Openings Report, which will soon later on Tuesday.
Indian Rupee (INR) expands upside down this Tuesday after the best day -long -two -week -long session. Positive developments surrounding US-Indian trade conversations provide some local currency support. US Secretary of Treasury Scott Bescent said Monday that many leading US trading partners took 'very good' measures to prevent tariffs on us, and one of the first deals to be signed is likely to join India. Additionally, foreign investors took the purchase of Indian stocks last week, a return from the sale of pressure witnessed earlier in the month. This, in turn, acts as a tail for India's rupee.
However, the revised US dollar (USD) demands that the tensions between the United States and China soften the money of India. In addition, concerns over geopolitical tensions between India and Pakistan may contribute to the collapse of the INR.
The US April consumer confidence and March Jolts job openings report will be released later on Tuesday. All eyes are in the initial reading of the US Gross Domestic Product (GDP) for the first quarter (Q1) on Wednesday leading the US Nonfarm Payrolls (NFP) report, which should be later on Friday.
Indian Rupee gained traction as foreign portfolio investors (FPIS) Continue to buy equities
- Breaking the ceasefire in the control line (LOC) came days after the attack of the terrorism of Pahalgam, which killed 26 people, most tourists, in the Baisaran valley near Palalgam, Jammu and Kashmir.
- US secretary of US Treasury Scott Bessent on Monday said the US government was in contact with China but to Beijing to take the first step in removing the US tariff fighting due to trade imbalance between the two countries.
- “Vice President Vance was in India last week and talked about the big development. I mentioned that negotiations in the Republic of Korea have gone well, and I think we have some massive negotiations with our Japanese allies,” Besment said.
- US president Donald Trump plans to soften the impact of his automotic tariffs by preventing duties on foreign cars from stacking with other tariffs and avoiding levies to foreign parts used in car making, every Wall Street Journal. Those actions are expected tomorrow.
- The Fed is expected to leave interest rates that will not change the scope of 4.25% -4.50% at the policy meeting on May 6-7, according to the CME Fedwatch tool.
USD/INR remains bearish under the main 100-day EMA
India's Rupee's edge is higher during the day. The USD/INR pair maintains a bearish vibe, with a price holding below the key 100-day exponential transfer of average (EMA) to the daily chart. The path of at least resistance is on the downside because the 14-day relative index index (RSI) stands under the midline near 37.00.
A bearish break from the lower limit of the down -time channel of 84.80 could drag the USD/INR to 84.22, the low of November 25, 2024. The long trade below the aforementioned level could expose 84.08, the low of November 6, 2024.
On the other hand, the important level of resistance appeared at 85.80, the 100-day EMA. A decisive rest of this level can choose more momentum and purpose for 86.35, the upper border of the trend channel.
