USD/INR weakens on possible foreign inflows
The Indian Rupee (INR) appreciated during the early European session on Thursday, supported by anticipated foreign equity inflows and a generally weaker US Dollar. Market participants are awaiting the release of US weekly Initial Jobless Claims and housing data later in the day. The INR’s strength is further attributed to the resilience of Indian benchmark indices, which have recovered from losses incurred earlier in the month due to reciprocal tariffs. India’s robust domestic economy is perceived as being better positioned to withstand a potential global recession compared to many peer nations facing higher tariffs. However, a weakening Chinese Yuan, influenced by ongoing trade disputes, could exert downward pressure on Asian currencies, including the INR. Furthermore, a recovery in crude oil prices may also contribute to INR depreciation, given India’s status as the world’s third-largest oil consumer. Investors are also anticipating the release of US Building Permits, Housing Starts, the Philly Fed Manufacturing Index, and weekly Initial Jobless Claims later on Thursday. The Indian market will be closed for Good Friday. Despite prevailing trade tensions, the Indian Rupee has demonstrated upward momentum.
