USD/INR holds onto gains despite FIIs buying, RBI's intervention
- The Indian Rupee trades with caution near 91.10 against the US Dollar at open on massive FIIs buying on Monday.
- US-Iran nuclear talks and India’s Q4 GDP data to be key triggers for the Indian Rupee.
- US President Trump threatens higher duties on countries if they don’t honor trade deals.
The Indian Rupee (INR) trades vulnerably against the US Dollar (USD) on Tuesday. The USD/INR pair holds onto Monday's gains near 91.10 despite the strong inflow of foreign funds into the Indian stock market.
On Monday, Foreign Institutional Investors (FIIs) bought shares worth Rs. 3,483.70 crores, the second-highest amount of buying this month, and turned the entire month net positive in terms of foreign flows. So far in February, FIIs have purchased shares worth Rs. 1,472.46 crore.
Meanwhile, the Reserve Bank of India's (RBI) intervention in spot and forward markets is failing to support the Indian Rupee. The Indian central bank is likely selling US dollars on Tuesday to prevent the rupee from falling past the psychologically important 91-per-dollar mark, Reuters reported.
This week, major triggers for the Indian Rupee will be nuclear talks between the United States (US) and Iran on Thursday, and India’s Q4 Gross Domestic Product (GDP) data on Friday.
The outcome of US-Iran nuclear talks will have a significant impact on the oil price. Currencies of countries that lack oil reserves and rely heavily on their imports to cover their energy needs remain highly sensitive to changes in the oil price.
Ahead of US-Iran talks, President Donald Trump has threatened Tehran through a post on Truth Social that it will be a very bad day for the country and its people if they don’t reach a deal.
Meanwhile, the US Dollar (USD) extends its recovery move on the expectation that volatility sparked by the US Supreme Court’s (SC) verdict against President Donald Trump’s tariff policy won’t last long. During the press time, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.2% higher to near 97.90.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | INR | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.00% | 0.02% | 0.92% | -0.02% | -0.14% | -0.07% | 0.01% | |
| EUR | -0.00% | 0.03% | 0.92% | -0.02% | -0.14% | -0.06% | 0.00% | |
| GBP | -0.02% | -0.03% | 0.91% | -0.04% | -0.16% | -0.10% | -0.01% | |
| JPY | -0.92% | -0.92% | -0.91% | -0.92% | -1.05% | -1.02% | -0.90% | |
| CAD | 0.02% | 0.02% | 0.04% | 0.92% | -0.12% | -0.05% | 0.03% | |
| AUD | 0.14% | 0.14% | 0.16% | 1.05% | 0.12% | 0.08% | 0.15% | |
| INR | 0.07% | 0.06% | 0.10% | 1.02% | 0.05% | -0.08% | 0.09% | |
| CHF | -0.01% | -0.01% | 0.01% | 0.90% | -0.03% | -0.15% | -0.09% |
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 US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Financial market participants believe that President Donald Trump has several alternatives to keep tariffs intact and has also threatened countries against “playing games with existing trade agreements” after the court’s verdict.
On Friday, the US Supreme Court ruled that Trump exceeded his authority by invoking economic emergency powers to back his tariff agenda and blocked additional import duties. In response, Trump has already announced 15% global tariffs.
Technical Analysis: USD/INR sees more upside towards 91.60
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USD/INR trades marginally lower at open around 91.10. Price holds above the 20-day Exponential Moving Average at 90.9273, keeping a mild bullish bias.
The 20-day EMA has flattened through recent sessions and is starting to turn higher, suggesting buyers retain control while above this gauge and could extend the advance toward the January 23 low of 91.61. While a pullback below the average could shift the bias back into a range.
The 14-day Relative Strength Index (RSI) continues to wobble inside the 40.00-60.00 range, indicating a sideways trend.
(The technical analysis of this story was written with the help of an AI tool.)
Economic Indicator
Gross Domestic Product Quarterly (YoY)
The Gross Domestic Product released by the Ministry of Statistics is a measure of the total value of all goods and services produced by India. The GDP is considered as a broad measure of Indian economic activity and health. Generally speaking, a high reading is seen as positive (or bullish) for the Rupee, while a falling trend is seen as negative (or bearish).
Read more.Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
