USD/INR: Trade deal boosts sentiment but risks remain – OCBC Bank

💡 DMK Insight

The Indian Rupee’s recent rally is intriguing, but here’s the catch: without concrete details on the US-India trade deal, sustainability is in question. Traders should be cautious as the market often reacts to headlines, but the lack of specifics means we could see a pullback as investors refocus on economic fundamentals. The INR’s movement might be short-lived unless we see tangible commitments from both countries. Watch for key support levels around recent lows; if the INR fails to hold these, it could signal a reversal. Additionally, keep an eye on related assets like Indian equities, which may also react to currency fluctuations. On the flip side, if the trade deal materializes with solid terms, we could see a stronger INR, potentially breaking resistance levels that traders have been eyeing. For now, monitor the situation closely and be ready to adjust positions based on any new developments or economic indicators that emerge in the coming weeks.