On 5th March 2019, it was repowered that the rupee 11 paise 70.81 against USD in opening trade, which can be attributed to the fact the USD has been weakened in overseas markets.
The currency initially at 70.95 at the interbank forex market but rose to 70.81, which has nee supported by the selling of American currency by exporters.
Easing crude prices have also been attributed to the success of the rupee. The news diverts away from the negativity that was associated with the pairing during the time an Indian pilot was captured.
INR has previously increased by 17 paise against UDS on the assumption that the US and China were closer to an agreement in relation to trade deals.
USD/INR Originally Dropped Due to Controversy Surrounding Captured Indian Pilot
On February 28th, it was reported that Pakistanâ€™s Prime Minister Imran Khan will be releasing an Indian pilot captured of the previous Friday.
The pilot was caught following a dogfight between Indian and Pakistani warplanes. The release of the pilot was put forward as a goodwill gesture which would act as a goodwill gesture to defuse the crisis.
Despite criticisms being made about the neighbouring country, Khan addressed in parliament that he also keen to promote peace between both.
India had stated earlier that no negotiations would be made in relation to the captured pilot.
Despite USD/INR being on the rise initially, enjoying a high of 71.50. The support of the pair is 70.80. and the outlook of investors wasnâ€™t positive at the time.
The INR/USD pair is one that many analysts remain sceptical of. The unstable nature of the pairing shows that there are weaknesses in both currencies.
Should the pair remain at 71, then it can test between a range of 70.85 and 70.75 as support. Should levels reach 71.5, then this will act as a resistance for the currency pair.
Other analysts state that the market may take its cues from any comments made but Donald Trump relating to his intentions to end Indiaâ€™s preferential trade treatment.
The current program allows for Indian exports with a value of 5.6 billion to enter the US duty-free.
A statement from the US Trade Representativeâ€™s Office states that the removal of India from the Generalized System of Preferences would only take effect 60 days after the notification to India and Congress.
The rise in value of INR shows that there are investment opportunities available for forex dealers, although it may be worthwhile focusing on daily events to see what could change within the market.
If the forex market has taught us anything, itâ€™s that we shouldnâ€™t be presumptuous when making investments, as the slightest tap can mean that investments soon become devalued.
It can also be worthwhile comparing short-term trends to long-terms one so that you can update your portfolio accordingly
- GBP Foreign Exchange Rate Showing Strong Performance - Aug 3, 2020
- Euro Currency Rate Reflects A Strengthening Euro Zone - Jul 30, 2020
- British Pound Foreign Exchange Rates Run into Troubled Waters - Jul 27, 2020