USD/INR consolidates as India’s retail inflation data takes centre stage

💡 DMK Insight

The USD/INR pair’s stagnation around 88.85 signals indecision, and here’s why that matters: With trade talks between the US and India hanging in the balance, traders are in a wait-and-see mode. This flat trading could indicate that market participants are hesitant to make significant moves until there’s clarity on the negotiations. If a breakthrough occurs, we could see a sharp reaction, either pushing the INR stronger or weakening it against the USD. Keep an eye on any news from these talks, as they could trigger volatility. But here’s the flip side: if talks stall or yield negative outcomes, the INR might face downward pressure, potentially breaking below key support levels. Traders should monitor the 88.50 level closely, as a breach could open the door for further declines. On the other hand, a positive development could push the pair towards 89.00. Watch for any economic indicators or statements from officials that could sway sentiment in the coming days.