- Summary:
- The USD/INR pair is still above key support levels. As of writting, USDINR is trading at 83.68, reflecting a slight increase of 0.12%.
The USD/INR pair continues to climb, with strong import demand keeping the pair above key support levels. As of writting, USDINR is trading at 83.68, reflecting a slight increase of 0.12%.
Importers Driving Demand
India’s heavy reliance on crude oil imports, combined with high energy prices globally, has created consistent upward demand for U.S.D. Contributing to the rupee’s weakness, as oil imports become costlier. Additionally, demand from other import sectors has further fueled this upward momentum in USDINR. Importers continue to purchase U.S. dollars to hedge against rising costs, adding additional support to the pair.
Key Levels in Focus
From a technical perspective, the USDINR chart shows clear support and resistance zones. The pair is currently holding above the 83.30 support level, with upside resistance near 83.99, a point that has previously capped gains. A break above the resistance could potentially push the USDINR to 84.20 leading to more gains.
Any pullback below 83.30 could result in the pair testing the next major support at 83.00. However, with strong import demand and the U.S.D maintaining strength, a sustained fall below this level seems unlikely in the short term.
Outlook
The outlook for USDINR remains bullish in the near term, driven by strong demand for the U.S.D due to high import volumes. Potential breakouts above key resistance levels, as this could lead to new highs. Conversely, any corrective movements may find support at previously mentioned levels.
By keeping an eye on both technical and fundamental factors, USDINR traders can better navigate the market in the coming days.
Read about the long term USDINR forecast here.