• USD/INR stabilizes about 86.00, breaking a three -day run streak after bouncing from the 21 -day EMA support about 85.80.
• Indian rupee weakens despite the decrease in geopolitical tensions, since the demand for importers by the US dollar and the cautious feeling of risk limit profits.
• The president of the Fed, Powell, maintains a cautious tone, pointing out that he will not rush to cut rates, and the attention is focused on his testimony before the Senate on Wednesday.

Indian rupee (INR) weakens against the US dollar (USD) during Wednesday’s European negotiation hours, giving early earnings while the US dollar stabilizes. The rupee opened with a firm tone amid a favorable risk feeling, but weakened throughout the session while the US dollar index (DXY) maintained its position near the minimum of the previous week. Meanwhile, crude oil prices remain stable after a strong massive sale of two days, offering limited support to rupee.

The USD/INR shows a slight recovery, stopping a three -day streak when bouncing from a minimum intradicate about 85.80. The pair found support in the 21 -day exponential mobile average (EMA) and negotiates around 86.02 at the time of writing, after a slight intradic rebound.

Geopolitical tensions in the Middle East have decreased after a high fire agreement between Iran and Israel, providing some relief to global markets. Oil prices have stabilized after a strong massive sale of two days, and the demand for sure shelter has cooled, supporting a broader risk feeling. While the rupee has benefited moderately from the de -escalation, its response remains moderate. The INR still faces pressure for the constant demand of the US dollar, particularly from oil companies, and remains sensitive to changes in global risk appetite.

Market movements: the volatility of the rupee persists; The RBI acts on liquidity, Powell keeps its line

• Indian rupee registered its greatest daily gain in a month on Tuesday, although volatility persists with the USD/INR oscillating between ₹ 85.80 and ₹ 86.89 during the last week. The average exchange rate of June so far is at approximately ₹ 86.00, aligning with the average of the year until the date of around ₹ 86.10.
• The presence of the Indian Reserve Bank (RBI) in the foreign exchange market has helped anchor the rupee, with the Central Bank supposedly intervening through sales of US dollars at key levels to stop a strong depreciation. Market participants expect the RBI to maintain their calibrated approach, managing volatility while protecting currency reserves.
• The RBI indicates a change in liquidity, announcing plans on Tuesday to remove short -term cash from the banking system. This movement marks a posture change after months of liquidity injections that had relieved indebtedness costs, which could impact the short -term dynamics of the rupee.
• The India Reserve Bank aims to remove 1 billion rupees (11.6 billion dollars) of the banking system through a seven -day repurchase auction at a variable type on June 27. This repurchase operation, the first since November, has been designed to align night interest rates closer to the repurchase rate and could exert upward pressure on short -term money market rates.
• In the national stock market, the Sensex reference index rose 700.40 points to close by 82,755.51, while the NIFTY increased 200.40 points to end by 25,244.75, driven by a better feeling of risk and the decrease in geopolitical tensions.
• The crude oil is stabilized after a strong fall, with the Brent around $ 66.60 and the WTI around $ 64.30 on Wednesday. Prices have stabilized after a strong descent at the beginning of the week, since the decrease in geopolitical tensions between Iran and Israel reduced the fears of interruptions in the supply.
• Testifying against Congress on Tuesday, the president of the Federal Reserve (FED), Jerome Powell, reinforced the patient approach of the Fed, pointing out that a feature cut in July is unlikely. He emphasized the need for greater clarity on inflation trends and the possible impacts of the highest tariffs before implementing any policy change. Powell’s comments suggest that the Fed continues to depend on the data, and feat cuts could be delayed until September or beyond. This cautious tone caused a change in market expectations, with operators reducing bets on short -term relief.
• After his appearance before the Chamber on Tuesday, the president of the FED, Jerome Powell, is scheduled to appear before the Senate Banking Committee at 10:00 am on Wednesday for his semiannual report on monetary policy.
• The American dollar index (DXY) remains firm around level 98.00 on Wednesday, with the operators keeping cautious before the second day of testimony of the president of the Fed, Powell. With a relatively quiet American economic calendar, the attention is focused on the sales data of new May housing that will be published later in the day.

Technical perspective of the USD/INR: Reproved at stake, the torque will be negotiated in a short -term range

The USD/INR is currently being negotiated around 86.03, reproving the rupture zone after sliding from the maximum recent. The pair found support near the 21 -day EMA at 85.91, which is closely aligned with the upper limit of the symmetrical triangle pattern. The PAR recently broke a symmetrical triangle, but faced resistance below the psychological brand of 87.00, which caused a setback.

The relative force index (RSI) in the daily chart is decreasing, floating above the neutral in 53.02, indicating a loss of bullish impulse and suggests a possible trade within a range between 85.80 and 86.90 in the short term. A decisive breakdown on any of the sides of this range will probably issue the next directional bias.