USD/INR Bulls Continue On Trump`s Tariffs Threats by Amit Gupta, Kedia Advisory
The Indian Rupee (INR) continues its downtrend as pressure mounts from a weaker Chinese Yuan and US President Trump’s tariff threats. Despite RBI’s interventions, foreign fund outflows and muted domestic equities add to the selling pressure. Traders will focus on the upcoming US Fed rate decision and India’s Federal Fiscal Deficit announcement this week. Technically, the USD/INR pair is poised for further bullish momentum, with the potential to test the 87.00 mark.
Key Highlights
* INR weakens amid global trade tensions and tariff threats.
* Foreign fund outflows and domestic equity trends add pressure.
* RBI's liquidity measures aim to stabilize the currency.
* US Fed’s policy meeting and India’s fiscal deficit data awaited.
* USD/INR poised for further upside, testing 87.00.
The Indian Rupee (INR) remains under pressure as the US Dollar strengthens, fueled by concerns over US President Donald Trump’s new tariff announcements. The INR’s downward movement has been exacerbated by a weaker Chinese Yuan, continued foreign fund outflows, and a subdued trend in domestic equities. Despite these pressures, the Reserve Bank of India (RBI) is actively intervening in the forex market, injecting liquidity to curb further depreciation of the Rupee.
On the economic front, the US Federal Reserve's monetary policy meeting on Wednesday will be pivotal, though no rate changes are expected. Additionally, India's Federal Fiscal Deficit data will be released later this week, possibly introducing measures to stimulate the economy. In other news, the resumption of direct flights between China and India adds optimism, but Trump’s tariff plans remain a primary concern for emerging market currencies.
The USD/INR pair is showing strong bullish momentum as it broke above the descending triangle pattern and continues to hold above the crucial 100-day Exponential Moving Average (EMA). The 14-day Relative Strength Index (RSI) near 63.20 supports further upside potential, with key resistance at the all-time high of 86.70. A breakout above this level could target the psychological 87.00 mark.
Finally
With bullish technical signals and global trade concerns, the USD/INR could see a test of higher levels, potentially reaching 87.00 if resistance breaks.
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