American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

USD/INR forms a small double-top: Is the rupee about to rebound?

by admin January 31, 2025
January 31, 2025
USD/INR forms a small double-top: Is the rupee about to rebound?

The USD/INR exchange rate has surged to a record high as the Indian rupee remained on edge. It jumped to a high of 86.65, up by 5% from its lowest level in 2023 as traders wait for the upcoming US Personal Consumption Expenditure (PCE) data. So, what next for the USD to INR exchange rate?

US PCE data ahead

The USD/INR continued its strong rally this week, as the Federal Reserve made its first interest rate decision of the year. As economists had widely expected, the Fed left interest rates unchanged at 4.50%.

The Fed left its guidance largely unchanged. It is now expected that inflation will remain higher for longer this year. As a result, officials anticipate that the country will require fewer interest rate cuts this year. 

Most economists now expect the Fed to deliver its first interest rate cut in its July meeting. It will then hold them steady and deliver another cut in the fourth quarter.

The Fed is in no hurry to cut rates for two main reasons. First, it is concerned that US inflation remains significantly high. The headline Consumer Price Index (CPI) rose from 2.7% in November to 2.9% in December last year. 

Economists expect the upcoming PCE report to show that prices continue rising. The headline PCE is expected to be 2.6%, up from 2.4% the previous month. Core PCE, excluding volatile food and energy prices, is expected to remain steady at 2.8%. All these numbers are higher than the Fed’s target of 2.0%.

The PCE is the most important inflation data that the Federal Reserve because it considers price changes in the rural and urban areas. This is unlike the Consumer Price Index data, which looks at the urban areas. 

Reserve Bank of India rate cuts

The USD/INR pair has also surged as investors anticipate the Reserve Bank of India (RBI) cutting interest rates. 

Odds of more rate cuts rose after the country published encouraging consumer inflation data this month. India’s Consumer Price Index (CPI) dropped to 5.22% in December from 5.48% a month earlier. It also dropped from 6.21% a month earlier.

Falling inflation and a slowing economy means that the RBI will have the justification to start cuttng rates. 

The RBI has diverged from other central banks in the past 12 months. It has left interest rates unchanged, a move that triggered Modi to replace the central bank governor. 

USD/INR technical analysis

USDINR chart by TradingView

The daily chart shows that the USD/INR exchange rate has surged to 86.68 as the Indian rupee crash accelerated. It has remained above all moving averages, a sign that bulls are in control. 

The pair is hovering near the extreme overshoot point of the Murrey Math Lines indicator. Also, the Percentage Price Oscillator (PPO) has risen and is above the zero line. It has also formed a small double-top chart pattern. 

Therefore, the pair will likely have a brief pullback, possibly to the ultimate resistance point at 85.93. This bullish view will become invalid if the exchange rate jumps above the double-top point at 86.70. 

The post USD/INR forms a small double-top: Is the rupee about to rebound? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Crypto price predictions: Stellar, Alchemy Pay, Mantra, Jasmy
next post
Very bad news for Pi Network holders: will the Pi coin price crash?

Related Posts

Zeni Resources

February 6, 2024

Jindalee Lithium Limited (ASX: JLL) – Trading Halt

July 4, 2024

Best crypto tokens to buy today for 5x...

May 7, 2025

3 reasons S&P 500 index ETFs like SPY,...

November 26, 2024

Element79 Gold Corp Completes Filing of Q1 Financial...

March 1, 2024

Sage Potash Closes Private Placement of $1,822,500

May 28, 2024

Jasmy, Polkadot, Toncoin price predictions ahead of Fed...

March 16, 2025

2 reason why the Nasdaq 100 and S&P...

January 27, 2025

E25 Secures USA Site for HPMSM Refinery

May 8, 2024

Palantir stock analysis ahead of earnings: brace for...

January 30, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,189)
    • Investing (2,528)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved