USD/INR hits record highs amid consistent FIIs outflow

💡 DMK Insight

The INR’s drop to record lows against the USD is a wake-up call for traders. This decline signals potential volatility in the forex market, particularly for those holding INR-denominated assets. A weaker rupee could lead to increased inflationary pressures in India, affecting consumer spending and economic growth. Traders should keep an eye on the USD/INR pair, as a sustained break below key psychological levels could trigger further selling. Additionally, this situation may ripple through emerging market currencies, prompting shifts in capital flows as investors seek safer havens. Watch for any intervention from the Reserve Bank of India, as their response could provide clues on future currency stability. On the flip side, this could present buying opportunities for exporters who benefit from a weaker currency. If you’re trading in this environment, monitor the 75 and 80 levels closely, as they could serve as critical support or resistance points in the coming days.