Elevated crude costs and importer demand pressure INR despite broader USD softness, with resistance at 95.90–96.
The Indian Rupee remains under pressure, failing to capitalize on a weaker US Dollar as elevated oil prices and persistent importer demand for USD weigh on the currency. USD/INR last traded at 95.76, with risks tilted upward toward resistance levels of 95.90–96.
Despite a decline in US Treasury yields and overnight USD selling, INR has struggled to gain traction, reflecting India’s dependence on oil imports. The early closure of the RBI’s FCNR(B) swap window in August removed a key source of incremental FX inflows, though existing buffers may provide limited support.
Daily momentum indicators suggest a mild bullish turn, while RSI has risen, reinforcing the upside bias for USD/INR. Analysts note that INR may continue to lag broader Asian currencies unless crude prices ease significantly.