Indian Rupee ticks up on possible RBI’s intervention

The Indian Rupee (INR) showed a slight uptick against the US Dollar (USD) on Tuesday, as traders speculated about potential intervention from the Reserve Bank of India (RBI). The USD/INR rate fell to around 95.67 from a recent high of 95.85, indicating a minor recovery in the INR. The Indian currency's gain was attributed to the RBI's possible intervention in the foreign exchange market, a move that has been observed for the eighth consecutive session, according to traders.

State-run banks were reportedly offering dollars, likely on behalf of the RBI. The MCX Crude Oil contract, expiring on August 19, rose by 1.1% to near Rs. 8,150, the highest level in two weeks, reflecting the impact of high oil prices on the INR. The USD/INR rate held above the 100-day simple moving average (SMA) at 95.0046, suggesting a moderate bullish bias as the currency consolidated near its recent highs.

The technical analysis, aided by AI, noted that the Relative Strength Index (14) at 52.8 indicated steady upside pressure, while no nearby resistance levels were identified. Factors such as oil prices, US Dollar value, and foreign investment levels significantly influence the Rupee's value, making it sensitive to external factors.