All the technical data, charts, tools and indicators you need to analyze and trade the USD/INR
BULLISH PERCENTAGE INDEX
The USD/INR pair tells the trader how many Indian Rupees (the quote currency) are needed to purchase one U.S. dollar (the base currency). The Rupee is symbolized by ₹ and is the 20th most traded currency worldwide.
HISTORIC HIGHS AND LOWS FOR USD/INR
- All-time records: Max: 69.528 on 28/08/2013 - Min: 1.30 in 1948
- Last 12 months (March 2016-March 2017): Max: 68.901 on 25/02/2016 - Min: 65.124 on 21/03/2017
- Last 5 years (March 2011-March 2016): Max: 69.528 on 28/08/2013 - Min: 50.010 on 28/01/2012
POLITICAL EVENTS THAT WILL AFFECT THE USD/INR IN 2017
In terms of political events that can affect the pair this year, we have of course the Trump Presidency: tax cuts and government spendings strategy, geopolitics and international relations of the US, including decisions related to trade deals and multinational alliances. In India, the demonetisation process will be under the spotlight. In November 2016, the Government of India announced the demonetisation of all 500 and 1,000 banknotes in order to reduce the shadow economy and take severe measures on the use of counterfeit cash to fund illegal activity and terrorism. The Goods and Services Tax (GST), the biggest reform in India’s indirect tax structure since the economy began to be opened up 25 years ago, will become reality in 2017 and might have consequences on the value of the Indian Rupee.
ASSETS THAT INFLUENCE USD/INR THE MOST
- Currencies: USD, CNY and GBP.
- Commodities: Gold, oil and silver (India is a major oil and commodity importer).
- Bonds: T-NOTE 10Y (10 year United States Treasury note) and GIND10YR (India Government Bond Generic Bid Yield 10 Year).
- Indices: S&P BSE SENSEX (S&P Bombay Stock Exchange Sensitive Index), NIFTY (National Stock Exchange of India's benchmark stock market index for Indian equity market) and NSE (National Stock Exchange of India Ltd).
ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE USD/INR
In India, the organizations and people that affect the most the moves of the USD/INR pair are:
- Reserve Bank of India (SBI, India’s Central bank) that issues statements and decides on the interest rates of the country. Its Governor is Urjit Patel.
- Government of India (whose President is Pranab Mukherjee) and its Ministry of Finance (whose minister is Arun Jaitley) that implement policies that affect the economy of the country.
In the USA, we have:
- Fed, the Federal Reserve of the United States whose president is Janet Yellen. The Fed controls the monetary policy, through active duties such as managing interest rates, setting the reserve requirement, and acting as a lender of last resort to the banking sector during times of bank insolvency or financial crisis.
- The US Government (and its President Donald Trump): events as administration statements, new laws and regulations or fiscal policy can increase or decrease the value of the US Dollar and the currencies traded against it, in this case the Canadian Dollar.
In terms of economic data, we should highlight the Trade Account Balance, a balance between exports and imports of total goods and services. A positive value shows trade surplus, while a negative value shows trade deficit. It is an event that generates some volatility for the USD/INR. If a steady demand in exchange for INR exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the INR.
Inflation is another economic value that is important for the USD/INR pair. It is measured among others by the CPI (Core Price Index) and the PPI (Production Price Index). They are key indicators to measure inflation and changes in purchasing trends.