In the early European session on Monday, the Indian Rupee hits a record low.
The INR is impacted by the USD's strengthening and ongoing outflows.
The US January ISM Manufacturing PMI report, which is due on Monday, is anticipated by investors.
On Monday, the Indian Rupee (INR) falls to a new all-time low. There is some selling pressure on the local currency as a result of Trump's announcement that tariffs will be imposed on China, Canada, and Mexico, among other major trading partners. The downside of the INR is also influenced by the stronger US dollar (USD), ongoing outflows of foreign institutional investors (FIIs), and a risk-off mentality.
However, the Reserve Bank of India's (RBI) foreign exchange intervention should protect the Rupee and limit its decline. The US ISM Manufacturing PMI for January will be watched by traders later on Monday.
The Indian Rupee continues to face selling pressure due to concerns about a potential trade war.
As of January 30, 2024, India's foreign exchange reserves had decreased from $701.176 billion on October 4, 2024, to $629.557 billion.
The Indian government will aim for a smaller fiscal deficit of 4.4% of GDP for fiscal year 2025–2026, according to Finance Minister Nirmala Sitharaman's budget on Friday. This is a reduction from the current year's revised 4.8% deficit.
In order to finance the deficit, the government raised its gross borrowing from the market from 14.01 trillion rupees to 14.82 trillion rupees ($171.26 billion) this year.
On Saturday, the White House announced that a 25% tax on imports from Canada and Mexico and an extra 10% tax on Chinese goods would be implemented on Tuesday.
China, Mexico, and Canada have promised to retaliate against Trump's announcement of broad new tariffs on their exports to the US.
In a statement posted on X on Saturday, the White House stated that "a tariff announcement is required to hold China, Mexico, and Canada accountable for their promises to halt the flood of poisonous drugs into the United States."
The USD/INR is aiming for a new record high.
The day's trading value of the Indian Rupee is lower. Because the price is above the important 100-day Exponential Moving Average (EMA), the USD/INR pair continues to have a positive outlook on the daily chart. The 14-day Relative Strength Index (RSI), which is above the midline at 63.20 and supports the upward momentum, indicates that the support is probably going to hold rather than break.
The psychological mark of 87.00 serves as the pair's initial upward barrier. A run to 87.50 might be possible with sustained gains above this level.
However, at 86.51, the low of January 31, the first support level appears. The January 28 low of 86.31 could be revealed by a clear break below this level.
The INR is impacted by the USD's strengthening and ongoing outflows.
The US January ISM Manufacturing PMI report, which is due on Monday, is anticipated by investors.
On Monday, the Indian Rupee (INR) falls to a new all-time low. There is some selling pressure on the local currency as a result of Trump's announcement that tariffs will be imposed on China, Canada, and Mexico, among other major trading partners. The downside of the INR is also influenced by the stronger US dollar (USD), ongoing outflows of foreign institutional investors (FIIs), and a risk-off mentality.
However, the Reserve Bank of India's (RBI) foreign exchange intervention should protect the Rupee and limit its decline. The US ISM Manufacturing PMI for January will be watched by traders later on Monday.
The Indian Rupee continues to face selling pressure due to concerns about a potential trade war.
As of January 30, 2024, India's foreign exchange reserves had decreased from $701.176 billion on October 4, 2024, to $629.557 billion.
The Indian government will aim for a smaller fiscal deficit of 4.4% of GDP for fiscal year 2025–2026, according to Finance Minister Nirmala Sitharaman's budget on Friday. This is a reduction from the current year's revised 4.8% deficit.
In order to finance the deficit, the government raised its gross borrowing from the market from 14.01 trillion rupees to 14.82 trillion rupees ($171.26 billion) this year.
On Saturday, the White House announced that a 25% tax on imports from Canada and Mexico and an extra 10% tax on Chinese goods would be implemented on Tuesday.
China, Mexico, and Canada have promised to retaliate against Trump's announcement of broad new tariffs on their exports to the US.
In a statement posted on X on Saturday, the White House stated that "a tariff announcement is required to hold China, Mexico, and Canada accountable for their promises to halt the flood of poisonous drugs into the United States."
The USD/INR is aiming for a new record high.
The day's trading value of the Indian Rupee is lower. Because the price is above the important 100-day Exponential Moving Average (EMA), the USD/INR pair continues to have a positive outlook on the daily chart. The 14-day Relative Strength Index (RSI), which is above the midline at 63.20 and supports the upward momentum, indicates that the support is probably going to hold rather than break.
The psychological mark of 87.00 serves as the pair's initial upward barrier. A run to 87.50 might be possible with sustained gains above this level.
However, at 86.51, the low of January 31, the first support level appears. The January 28 low of 86.31 could be revealed by a clear break below this level.
