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USD/INR recovers possible RBI's intervention-driven early losses

The Indian Rupee (INR) surrenders almost all of its gains against the US Dollar (USD) during closing trading hours in India on Tuesday. The USD/INR pair claws back its early losses and is marginally down near 88.80.

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💡 DMK Insight

The INR’s late-session reversal against the USD highlights ongoing volatility in currency markets. With the USD/INR pair hovering near 88.80, traders should consider the implications of this movement. The Indian Rupee’s struggle to maintain gains suggests underlying weakness, possibly driven by economic data or geopolitical tensions. This could lead to increased volatility in the coming days, especially if the pair tests key resistance levels around 89.00. Watch for any significant news from the Reserve Bank of India or U.S. economic indicators that could further influence this pair. On the flip side, if the INR manages to stabilize and break above 88.80, it could signal a short-term bullish trend, attracting more buyers. However, the risk of a pullback remains high, so keeping an eye on market sentiment and external factors is crucial.

📮 Takeaway

Monitor the USD/INR pair closely around 88.80; a break above could signal bullish momentum, while failure to hold may lead to further declines.

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