The Indian Rupee (INR) remains stable against the US Dollar (USD) on Wednesday, with potential interventions by the Reserve Bank of India (RBI) limiting upward movement in the USD/INR pair. However, the Rupee faces downward pressure from significant outflows, as foreign institutional investors have sold approximately $10 billion in Indian stocks this October, surpassing the previous record set in March 2020.
In a recent meeting at the 16th BRICS Summit, Indian Prime Minister Narendra Modi discussed peace efforts in Ukraine with Russian President Vladimir Putin and is scheduled to meet Chinese President Xi Jinping. Meanwhile, the USD has strengthened amid rising Treasury yields, with a 91% likelihood of a 25-basis-point rate cut by the Federal Reserve, according to the CME FedWatch Tool.
RBI Deputy Governor Michael Patra emphasized the importance of strengthening macroeconomic fundamentals and noted that India’s foreign exchange reserves are now equivalent to nearly 12 months of imports. The USD/INR pair continues to trade above 84.00, consolidating within an ascending channel, with technical indicators suggesting bullish momentum. Resistance may be met at the all-time high of 84.14, while support is identified at 84.02.
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