USD/INR strengthens as US Dollar pares recent losses ahead of Nonfarm Payrolls

💡 DMK Insight

USD/INR’s recent appreciation might be short-lived, and here’s why: While the Indian Rupee is buoyed by equity inflows, the persistent demand for the Greenback from local corporates suggests a tug-of-war. Traders should note that this dynamic could limit INR’s upside potential. If USD/INR continues to face resistance, it might hover around key levels that traders should monitor closely. Look for any shifts in corporate demand or changes in equity market sentiment, as these could trigger significant moves. If the pair breaks below a certain threshold, it could signal a stronger trend for the Rupee. On the flip side, if the equity inflows slow down or if there’s a sudden spike in demand for USD, we could see a rapid reversal. Keep an eye on the broader market context, especially any macroeconomic indicators that could influence currency flows. For now, watch for USD/INR’s performance around its recent highs and lows to gauge the next move.