- Indian Rupee Statedies in Asian session on Monday.
- The concerns about geopolitical tensions between India and Pakistan weigh on the Indian rupee.
- The rise in foreign entrances and the fall in crude oil prices could help limit the losses of the INR.
The Indian Roupie (INR) is stable on Monday. The growing tension with Pakistan could trigger a feeling of risk among traders, which could lead to the drop in Indian currency. The ceasefire violation along the control line (LOC) occurred a few days after the terrorist attack of Pahalgam, which killed 26 people, mainly tourists, in the Baisaran valley near Pahalgam, of Jammu-et-Cachemire.
On the other hand, foreign portfolio investors (FPI) continued to buy Indians actions for the seventh consecutive day. This, in turn, could increase the local currency against the greenback in the short term. In addition, the fall in crude oil prices could contribute to the increase in INR, because India is the third largest consumer of crude oil in the world.
The United States Dallas Nourished The commercial manufacturing index for April will be published later on Monday. The preliminary reading of us Gross domestic product (GDP) for the first quarter (Q1) will be under the spotlight on Wednesday in front of the United States Non -agricultural payrolls (NFP) Report, which is due later on Friday.
Indian rupees exchanges In the middle of the tensions of India-Pakistan
- Tensions between India and Pakistan increase after Pakistan violated a ceasefire through the loc after the Pahalgam terrorist attack. Thursday evening, a few hours after the suspension of the 1971 Simla agreement, the Pakistani army violated the truce along the loc and started to shoot on various sites. The Indian army replied “effectively”.
- The Bank of India reserve is expected to reduce the repo rate to 5.50% by end-Q3 (compared to 5.75% in the March ballot), according to the Reuters survey.
- American agriculture secretary Brooke Rollins said on Sunday that Trump administration had daily conversations with China on prices by Reuters. Rollins added that there had been current talks between the two nations and that commercial transactions with other nations were “very close”.
President Donald Trump said on Friday that the United States will be reasonable on prices, adding that the markets are adapting to the pricing policy. - The feeling of consumers of the University of Michigan (UOM) in April increased to 52.2 of 50.8 in the previous reading, better than the estimate of 50.8. The expectations of consumer inflation for one year were denied 6.5% in April against 6.7% before.
The USD / INR perspectives remain lowered under the 100 -day EMA
The Indian rupe is negotiating flat the day. The negative prospects USD / INR pair remains intact, characterized by the price holding below the exponential mobile average of 100 days (EMA) on the daily chart. In addition, the 14 -day relative force index (RSI) is below the midline nearly 41.00, supporting short -term sellers.
The lower limit of the descending tendency canal at 84.80 acts as an initial level of support for USD / INR. Prolonged losses could see a drop to 84.22, the lowest of November 25, 2024. Further south, the additional downward filter to watch is 84.08, the lowest of November 6, 2024.
In the bullish case, the first upward barrier is located at 85.80, the EMA of 100 days. If the pair breaks above this level, it could lead to a higher pressure and push the pair around 86.35, the upper limit of the trend channel.
