USD/INR clings to gains as easing US-EU disputes boost US Dollar
|- The Indian Rupee remains on the back foot against the US Dollar due to multiple headwinds.
- The US Dollar gains on receding geopolitical and trade tensions between the US and the EU.
- FIIs continue to offload their stakes in the Indian stock market.
The Indian Rupee (INR) holds onto losses near its all-time low against the US Dollar (USD) in the opening session on Thursday. The USD/INR pair trades marginally below the lifetime high of 92.00 posted on Wednesday as continuous selling pressure in the Indian stock market from overseas investors keeps battering the Indian currency.
Foreign Institutional Investors (FIIs) continue to pare their stakes in the Indian equity market due to the United States (US)- India trade deal stalemate.
So far in January, FIIs have remained net sellers in 13 of 14 trading days, offloading stakes worth Rs. 34,041.21 crore.
On the domestic front, investors await the preliminary HSBC Composite Purchasing Managers’ Index (PMI) data for January, which will be released on Friday. Investors will closely monitor the data to get fresh cues about the economy’s overall demand ahead of the Financial Year (FY) 2026-2027 fiscal budget announcement on February 1.
The table below shows the percentage change of Indian Rupee (INR) against listed major currencies today. Indian Rupee was the weakest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | INR | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.02% | -0.02% | 0.25% | -0.07% | -0.59% | 0.07% | -0.08% | |
| EUR | 0.02% | -0.00% | 0.28% | -0.05% | -0.58% | 0.07% | -0.06% | |
| GBP | 0.02% | 0.00% | 0.28% | -0.05% | -0.57% | 0.10% | -0.06% | |
| JPY | -0.25% | -0.28% | -0.28% | -0.32% | -0.82% | -0.21% | -0.32% | |
| CAD | 0.07% | 0.05% | 0.05% | 0.32% | -0.51% | 0.11% | -0.01% | |
| AUD | 0.59% | 0.58% | 0.57% | 0.82% | 0.51% | 0.62% | 0.51% | |
| INR | -0.07% | -0.07% | -0.10% | 0.21% | -0.11% | -0.62% | -0.14% | |
| CHF | 0.08% | 0.06% | 0.06% | 0.32% | 0.01% | -0.51% | 0.14% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Indian Rupee from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent INR (base)/USD (quote).
Daily Digest Market Movers: Trump agrees framework with NATO over Greenland crisis
- A strong recovery move in the US Dollar due to easing geopolitical and trade tensions between the US and the European Union (EU) is also strengthening USD/INR. As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, clings to gains near Wednesday’s high around 98.80.
- The US Dollar attracted significant bids on Wednesday after US President Donald Trump dropped his plans of military action and tariff threats on EU members for Greenland’s acquisition.
- Speaking at the World Economic Forum (WEF) in Davos on Wednesday, Trump said that “I won't use force” to purchase Greenland, but is “seeking immediate negotiations” to discuss its acquisition.
- US President Trump also confirmed his plans of dropping Greenland’s forceful acquisition through a post on Truth.Social, after meeting with the Secretary General of NATO, Mark Rutte. Trump added that Washington and NATO have formed the framework of a “future deal with respect to Greenland, and in fact, the entire Arctic Region”.
- Last weekend, US President Trump announced 10% tariffs on several EU nations and the United Kingdom (UK) for opposing Washington’s plans to possess Greenland, and warned that import duties could be increased further unless a deal is reached. The event led to a sharp decline in the demand for riskier assets and the US Dollar, while heightening concerns of a trade war between the world’s largest economies.
- Meanwhile, investors await the US Personal Consumption Expenditure Prices Index (PCE) data for October and November, which will be published at 15:00 GMT. The impact of the Federal Reserve’s (Fed) preferred inflation gauge on expectations for the monetary policy outlook will be limited, as it doesn't cover price changes of latest months.
Technical Analysis: USD/INR sees more upside as 20-day EMA keeps rising
USD/INR trades firmly near 91.81 as of writing. The pair holds above a rising 20-day Exponential Moving Average (EMA), preserving a firm bullish bias. The 20-day EMA continues to slope higher, confirming trend strength.
The 14-day Relative Strength Index (RSI) at 73.28 (overbought) highlights stretched momentum after the latest advance. Initial support sits at the 20-day EMA at 90.72, and while above this gauge, the path of least resistance would remain higher.
Should buyers defend the 20-day EMA at 90.72, the advance would extend, though the overbought oscillator could cap momentum until it cools. A daily close below that average would warn of a loss of trend control, with RSI slipping under 70, flagging a broader pullback.
(The technical analysis of this story was written with the help of an AI tool.)
Economic Indicator
Core Personal Consumption Expenditures - Price Index (YoY)
The Core Personal Consumption Expenditures (PCE), released by the US Bureau of Economic Analysis on a monthly basis, measures the changes in the prices of goods and services purchased by consumers in the United States (US). The PCE Price Index is also the Federal Reserve’s (Fed) preferred gauge of inflation. The YoY reading compares the prices of goods in the reference month to the same month a year earlier. The core reading excludes the so-called more volatile food and energy components to give a more accurate measurement of price pressures." Generally, a high reading is bullish for the US Dollar (USD), while a low reading is bearish.
Read more.Next release: Thu Jan 22, 2026 15:00
Frequency: Monthly
Consensus: -
Previous: 2.8%
Source: US Bureau of Economic Analysis
After publishing the GDP report, the US Bureau of Economic Analysis releases the Personal Consumption Expenditures (PCE) Price Index data alongside the monthly changes in Personal Spending and Personal Income. FOMC policymakers use the annual Core PCE Price Index, which excludes volatile food and energy prices, as their primary gauge of inflation. A stronger-than-expected reading could help the USD outperform its rivals as it would hint at a possible hawkish shift in the Fed’s forward guidance and vice versa.
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