March 24, 2025
New Delhi, India
USDINR Today
The Indian Rupee (INR) strengthened on Monday, extending gains after closing at its highest level in over two months. The currency found support from fresh foreign inflows, a stronger USD, and upbeat domestic equities.
Key Market Drivers
Foreign Inflows: FPIs turned net buyers in equities and debt.
Stronger PMI Data: HSBC India Manufacturing PMI rose to 57.6 (from 56.3), signaling expansion.
Weaker Services Sector: Services PMI eased to 57.7 (from 59.0), while Composite PMI fell to 58.6 (from 58.8).
Crude Oil Prices: A rebound in oil prices amid Middle East tensions could weigh on INR.
Global Developments Impacting INR
Trump’s April 2 Tariff Plan: New US reciprocal tariffs on key sectors (autos, pharma, semiconductors) could impact trade flows.
US Immigration Policy: The US plans to revoke temporary legal status for over 500,000 migrants, adding to economic uncertainty.
Federal Reserve Outlook: Fed policymakers maintain their forecast for two rate cuts later this year.
Market Outlook
Forex experts predict the USD-INR pair to trade between 86.00-86.80, with a possible rebound to 86.50-86.60 amid global headwinds.
Investors now await the US S&P Global PMI data due later today, which could further influence currency movement.
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