May 2, 2025
New Delhi, India
USDINR
The Indian Rupee (INR) continued its upward trajectory on Friday, supported by robust foreign portfolio investments and increased US Dollar (USD) sales from local exporters. This positive momentum is further fueled by optimism surrounding potential trade agreements between the US and India.
Foreign investors have shown renewed interest in Indian equities, contributing to the INR’s strength. This trend aligns with the currency’s performance in March, where it appreciated over 2%, marking its strongest monthly performance since November 2018.
However, escalating geopolitical tensions between India and Pakistan could temper the INR’s gains. Pakistan’s claims of credible intelligence suggesting imminent Indian military action have heightened regional uncertainties.
Market participants are also closely monitoring upcoming US economic indicators, including the April Nonfarm Payrolls (NFP) report, the Unemployment Rate, and Average Hourly Earnings. These data points are anticipated to provide insights into the Federal Reserve’s policy direction.
In summary, while the Indian Rupee benefits from positive domestic factors and trade optimism, external geopolitical risks and forthcoming US economic data releases remain critical factors influencing its trajectory.
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