USD/INR recovers even as Greenback underperforms amid US trade policy uncertainty

💡 DMK Insight

The INR’s retreat against the USD signals potential volatility ahead for currency traders. Despite the USD facing pressure, the USD/INR nearing 91.00 suggests a critical resistance level. Traders should be cautious as this could indicate a shift in sentiment, especially if the pair breaks above this level. A sustained move above 91.00 might trigger further buying interest in the USD, impacting not just the INR but also other emerging market currencies. Keep an eye on economic indicators from both the US and India, as any shifts in interest rates or inflation data could amplify these movements. The broader context of global economic recovery and geopolitical tensions also plays a role here, potentially influencing capital flows into or out of the INR. For those trading the INR, monitoring the 91.00 level is crucial. A break could lead to a test of higher levels, while a failure to hold could see the INR regain strength. Watch for any news from the Reserve Bank of India that might affect monetary policy, as this could be a game-changer in the near term.