- Indian rupee begins the week in a negative note against the US dollar due to multiple winds against.
- Investors expect the RBI to maintain stable interest rates on Wednesday.
- Operators increase the Fed Interest Rat cutting bets after the weak US NFP data.
The Indian rupee (INR) resumes its road down against the US dollar (USD) at the beginning of the week. The USD/INR pair bounces about 87.65 after a two -day correction, since the Indian currency faces a significant pressure due to multiple winds against, such as the persistent exit of foreign currencies from the Indian capital markets, commercial tensions between the US and India, and the uncertainty around the monetary policy announcement of the Reserve Bank of India (RBI) on Wednesday.
Foreign institutional investors (FIIS) have started the month selling Indian shares worth 3,366.60 million rupees. In July, foreign investors sold shares worth 47,666.68 million rupees, which was more than double their accumulated purchases in the last four months.
Last week, US President Trump announced a 25% tariff with an un specified penalty for buying oil from Russia, on India imports. The announcement has increased uncertainty about the prospects of Indian companies, which export a significant amount of their production to the US. In addition, this has also decreased the competitiveness of Indian products in the global market.
Meanwhile, investors await the announcement of the decision on interest rates on the part of the RBI on Wednesday. The RBI is expected to maintain the stable key rate in 5.5%, but will probably guide a perspective of moderate interest rates amid the decrease in pressures on prices and commercial tensions between the US and India. According to Nomura analysts, the RBI will cut interest rates at 25 basic points (PBS) in October and December policy meetings.
Indian Rupia Price today
The lower table shows the percentage of change of the Indian rupee (INR) compared to the main coins today. Indian Rupia was the weakest currency in front of the euro.
| USD | EUR | GBP | JPY | CAD | Aud | INR | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.20% | 0.08% | 0.40% | -0.02% | -0.01% | 0.28% | 0.11% | |
| EUR | -0.20% | -0.07% | 0.19% | -0.22% | -0.35% | 1.44% | -0.10% | |
| GBP | -0.08% | 0.07% | 0.29% | -0.14% | -0.28% | 0.23% | -0.05% | |
| JPY | -0.40% | -0.19% | -0.29% | -0.41% | -0.55% | 0.61% | -0.13% | |
| CAD | 0.02% | 0.22% | 0.14% | 0.41% | -0.15% | 1.09% | 0.09% | |
| Aud | 0.01% | 0.35% | 0.28% | 0.55% | 0.15% | 1.16% | 0.23% | |
| INR | -0.28% | -1.44% | -0.23% | -0.61% | -1.09% | -1.16% | -1.36% | |
| CHF | -0.11% | 0.10% | 0.05% | 0.13% | -0.09% | -0.23% | 1.36% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the Indian rupee of the left column and move along the horizontal line to the US dollar, the percentage change shown in the table will represent the INR (base)/USD (quotation).
What moves the market today: Indian rupee goes back to the US dollar after a two -day recovery
- Indian rupee descends against the US dollar on Monday, even when the latter corrects significantly, after signs of fissures under the conditions of the United States labor market (USA).
- The US dollar index (DXY), which tracks the value of the dollar against six main currencies, quotes with caution near Friday’s minimum around 98.70, at the time of writing. The DXY fell more than 1.4% since its maximum of more than two months around 100.25 on Friday.
- The Non -Agricultural Payroll (NFP) report showed on Friday that the jobs created in July were 73K, significantly below the 110K estimates. In addition, June employment figures were reviewed significantly down 14K from 147K. A strong drop in the employment data of June raised doubts about the health of the labor market and the credibility of the US data.
- The event has led to the dismissal of the commissioner of the Office of Labor Statistics (BLS), Erika Mtntarfer, who has been accused of falsifying employment numbers by the US president, Donald Trump, which has generated a significant increase in the bets of the operators in favor of trimming of interest rates by the Federal Reserve (FED) at the September meeting.
- According to the CME Fedwatch tool, the probability that the FED cuts interest rates at the September meeting has increased to 80.8% from 41.2% seen on Thursday, one day before the publication of NFP data.
- Meanwhile, the governor of the Fed, Adriana Kugler, has sent a resignation to President Trump, ending her mandate in advance, who was scheduled for January 2026. Market experts believe that Kugler’s resignation has opened a space for Trump to fill her candidate, which can help him support lower interest rates. Trump has been criticizing the Fed, especially President Jerome Powell, to maintain a restrictive monetary policy position.
Technical analysis: USD/INR rises about 87.65
The USD/INR bounces after finding purchase interest about 87.28 in the opening session on Monday. The torque is recovered since an exponential (EMA) mobile average of 20 days around 86.70 indicates that the short -term trend remains optimistic.
The 14-day relative force (RSI) index oscillates within the range of 60.00-80.00, suggesting a strong bullish impulse.
Looking down, the 20 -day EMA will perform as a key support for the pair. On the positive side, the maximum of February 10 around 88.15 will be a critical obstacle to the pair.
Economic indicator
Interest rate decision
He Reserve Bank of India It manages Indian monetary policy and publishes the decisions that the monetary policy committee makes about interest rates. If the bank is optimistic about its inflationary prospects of the economy and rises interest rates it is perceived as positive and bullish for Indian rupee, while a negative perspective, or a rate cut, looks as negative and bassist for the currency.
Read more.
Next publication:
LIE AUG 06, 2025 04:30
Frequency:
Irregular
Dear:
5.5%
Previous:
5.5%
Fountain:
Reserve Bank of India
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
