The Indian Rupee faces depreciation pressure amid rising oil prices and geopolitical risks, with USD/INR testing resistance near 95.40 levels.
The Indian Rupee (INR) has come under depreciation pressure as resurgent oil prices and geopolitical tensions push USD/INR toward a one-month high. The pair was last seen at 95.40, with mild bullish momentum and tentative signs of moderation in the relative strength index (RSI).
Recent pressure eased slightly as oil prices retreated from highs, and Reserve Bank of India (RBI)-linked USD sales helped limit losses. Foreign inflows, including equity and debt, have also improved marginally following RBI’s June measures to attract FX inflows via FCNR(B) deposits and expanded foreign access to government bonds.
Near-term stability is expected, but a sustained INR recovery may require further declines in oil prices. Resistance for USD/INR is seen at 95.55, a key Fibonacci retracement level.