USD/INR REMAINS WEAK AS CONCERNS OVER FED'S INDEPENDENCE RISE
USD/INR REMAINS WEAK AS CONCERNS OVER FED'S INDEPENDENCE RISE
The Indian Rupee (INR) has recently shown signs of strength, trading near 85.13 against the U.S. dollar during the early Asian session on Tuesday, April 22, 2025.
The INR has edged higher, trading near 85.13 against the U.S. dollar, reflecting market apprehension over the Federal Reserve's independence and its potential impact on U.S. monetary policy.
President Donald Trump's recent criticism of Federal Reserve Chairman Jerome Powell has raised concerns about the central bank's independence.
Such political interference has led to diminished investor confidence in the U.S. dollar.
The rally in Indian equities, fueled by strong performances in the financial sector and better-than-expected earnings from major banks, has provided support to the Indian currency.
The BSE Sensex and Nifty 50 indices have gained over 1% in recent sessions.
The INR faces technical resistance near the 85.00 level, with the 200-day moving average acting as a barrier.
The failure to surpass this psychological mark suggests difficulty in maintaining upward momentum.
Foreign investors have shown a mixed response, buying $504.5 million in Indian equities while selling $18 million in bonds on April 17.
The Reserve Bank of India (RBI) may intervene in the foreign exchange market to absorb dollar inflows and boost foreign exchange reserves, which recently rose to a five-month high of $677.8 billion.
