Indian Rupee: Dollar inflows support INR but impulse may fade – OCBC
OCBC’s Christopher Wong notes that strong foreign-currency inflows linked to the RBI’s special measures have bolstered the Indian Rupee (INR) and strengthened the central bank’s FX buffer.
The Indian Rupee (INR) has been supported by strong foreign-currency inflows, primarily due to the Reserve Bank of India's (RBI) special measures. OCBC’s Christopher Wong highlights that the RBI's FX buffer and banking system liquidity have benefited from the influx, reaching a record INR9.7tn. However, as the FCNR(B) window has closed, the exceptional near-term dollar supply is anticipated to fade, potentially leading to more two-way RBI management.
USD/INR remains under bearish pressure, with support levels at 94.30 and 94.15, and resistance at 96.74 and 95.10. The RSI has fallen to oversold conditions, suggesting that the decline's pace may moderate.
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