The USD/INR pair trades at a five-month low of 93.70, driven by strong FII inflows and lower oil prices, while technical indicators suggest the pair remains in a bearish trend below the 94.69 resistance level.
The pair printed a fresh five-month low near 93.70 as FIIs poured Rs. 53,172.24 crore into Indian equities so far in November and oil prices slid on US-Iran deal hopes, both INR-supportive. Price sits below the 20-day EMA at 94.69 with RSI near 25; oversold conditions could slow, but not immediately reverse, the downside toward 93.00.
Oil has fallen significantly after President Trump told CNN it is 'highly unlikely' he will order fresh military strikes on Iran if talks progress, with MUFG noting a softer Washington tone is pulling back the geopolitical risk premium. The MCX November 19 contract sits near Rs. 8,148, close to Tuesday's two-month low of Rs. 7,861, though it ticked 0.6% higher.
The Indian Rupee continues to strengthen against the US Dollar, reaching a fresh five-month low of 93.70. This rally is supported by massive foreign institutional investment inflows totaling Rs. 53,172.24 crore in November and a decline in oil prices following reduced geopolitical tensions between the US and Iran.
Foreign Institutional Investors have been relentless net buyers of Indian stocks in November, pouring in Rs. 53,172.24 crore, and falling oil prices reduce India's import bill, both lifting demand for the Rupee.
The article sees support near 93.00; a daily close back above the 20-day EMA at 94.69 would be needed to ease the downside pressure.
President Trump said it is 'highly unlikely' he will order new strikes on Iran if negotiations keep progressing, which has lowered the geopolitical risk premium in oil.