USD/INR SLUMPS ON INFLOWS AND US DOLLAR SALES
USD/INR SLUMPS ON INFLOWS AND US DOLLAR SALES
The Indian Rupee (INR) has continued its rally, bolstered by substantial foreign portfolio inflows into Indian equities and increased US Dollar (USD) sales by local exporters hedging their receivables.
Data from the National Securities Depository Limited (NSDL) indicates that foreign investors bought $276 million in Indian equities on April 29, 2025, contributing to the rupee's appreciation.
The INR opened slightly stronger at 84.42–84.44 per USD on May 2, 2025, compared to its previous close of 84.4875, reflecting the positive sentiment.
The rupee's rally was further supported by a decisive break through the critical 84.90–85.00 resistance levels, adding momentum to the upward trend.
The INR's strength is also attributed to positive movements in other Asian currencies, such as the offshore Chinese yuan, which have improved market sentiment.
Attention now turns to upcoming U.S. non-farm payroll data for economic cues, as the market assesses potential impacts on the USD and, consequently, on the INR.
