February 14, 2025
New Delhi, India
USDINR Today
The USD/INR pair maintained its upward trajectory during Friday’s Asian session, trading around 86.70. The renewed demand for the US Dollar (USD), primarily driven by importers, supported the currency pair ahead of key economic data releases.
Key Drivers Behind USD/INR Movement
- Rising USD Demand: Importers’ demand for the Greenback has lifted the pair.
- US-India Trade Talks: US President Donald Trump revealed that Indian PM Narendra Modi expressed willingness to ease tariffs and import more US oil and gas to reduce the bilateral trade deficit.
- FII Activity: Foreign Institutional Investors (FIIs) continue to offload Indian equities, posing a downward risk for the rupee (INR).
RBI Intervention: A Potential Brake on USD/INR Surge
The Reserve Bank of India (RBI) has intensified its market intervention after the INR hit a record low of 88 per USD earlier this week. By selling dollars in the spot and forward markets, the RBI aims to limit INR’s depreciation.
Upcoming Data Releases
- India’s Wholesale Price Index (WPI) – to gauge domestic inflation trends.
- US Retail Sales (January) – to assess consumer spending and its impact on the USD.
Outlook:
While dollar demand persists, the RBI’s interventions and positive signals from US-India trade relations might limit INR losses in the near term. Market participants will closely monitor global tariff developments and domestic economic data for further directional cues.
