- The US dollar continues to see buyers against the Indian rupee, despite the fact that the RBI recently intervened.
- The US dollar initially dipped against the Indian rupee during the trading session on Wednesday, but we have jumped back above the 90.00 rupee level, continuing the signs of support for the greenback against the Indian currency.
- After all, this does make a certain amount of sense, considering that although the Indian Central Bank did intervene about a week and a half ago, the reality is that there are a lot of pressures against the rupee at the moment, especially as exporters are bidding the US dollar heavily.
Of course, there are a lot of concerns about global growth and that directly influences how certain emerging market currencies, such as the Indian rupee, are treated. With this being said, the US dollar has been rallying against the Indian rupee since the announcement by Donald Trump that maybe there was something to be done about Chinese tariffs instead of just simply slapping them on.
This Has Been Massive
Rising from just under 84.00 rupees to where we are now, when you look at the US dollar against the Indian rupee going back to 2022, we were at 74.00, and we are at 90.00 now.
I think this is a market that will continue to be somewhat noisy and choppy. That makes a certain amount of sense, considering that the RBI is well known to intervene and set reference rates. They do not like the way that the rupee has crumbled, but the reality is the market doesn’t care.
This is going to continue to be a buy on the dips scenario with the 50-day EMA down at 89.457 offering support. I do think that we will make a run back toward the 91.50 rupee level again.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
