![]() ![]() Skyrocketing inflation has also been a key driver behind dollar strength, prompting six Federal Reserve interest rate increases in 2022. ![]() The index-an effective dollar performance measure-reflects its strength or weakness relative to a selection of competing currencies: the British pound (GBP), Canadian dollar (CAD), euro (EUR), Japanese yen (JPY), the Swedish krona (SEK) and the Swiss franc (CHF).Īlthough fears of a recession have reduced the dollar’s 2022 high to 11.87%, its overall strength also reflects a more favorable outlook for confidence in the U.S. According to the ICE Dollar Index (DXY), a barometer of dollar strength, the buck has achieved its greatest gains since 2002.Ī currency’s strength or weakness cannot be determined in isolation. September saw a surging dollar make its yearly high of 114.10, a 14% increase in value compared to its basket of challenger currencies. The following investigation into factors that influence this currency pair will also include IND vs USD forecasts over a variety of time horizons. It’s likely the current inflationary climate-in addition to India’s widening $100 billion trade deficit-will propel further rupee weakness into 2023 and beyond. amid geopolitical uncertainty and fears of a global economic slowdown. The dollar’s safe-haven status has helped, encouraging capital flows into the U.S. Federal Reserve (Fed) and global inflationary pressures have boosted the dollar relative to its rival currencies. This is largely a consequence of macroeconomic factors bolstering dollar strength. However, the rupee’s 8.36% decline against the greenback since January is consistent with the weakness experienced by most dollar-paired currencies. Rupee weakness has accelerated this year, best illustrated by its dramatic all-time low (82.77) printed against the dollar in October. When investing, your capital is at risk.The Indian Rupee’s Current Outlook in 2022įollowing a sustained long-term downtrend over the past decade, 2022 resumes a bearish outlook for the Indian rupee (INR). Start trading forex and stocks CFDs today with Plus500 – regulated broker with no commissionsĭisclaimer: The content on this site should not be considered investment advice. To be more specific, the preliminary US Michigan Consumer Sentiment Index was reported at 67.7, representing a noteworthy decrease from the previous reading of 69.5, and also below the expected 69.1. Source: TradingViewĪlthough the USD has once again gained momentum against the Rupee, the greenback has also come under pressure recently, probably due to a downbeat US consumer sentiment data published on Friday. The bullish sentiment is mainly seen in oscillators and moving averages ( MAs), with the latter showing a ‘buy’ at 13. Notably, the 1-day gauge on TradingView is suggesting a ‘strong buy’ for USD/INR, with 16 indicators offering a ‘buy’ rating and 9 being ‘neutral.’ No technical indicators are recommending a ‘sell’ at the moment. The US dollar’s favorable position against its Indian counterpart is reflected in the pair’s technical analysis. ![]() The move is aimed at strengthening trade ties and potentially reducing its dependence on foreign currencies in international trade. Meanwhile, on September 15, India’s Finance Minister Nirmala Sitharaman said that the country is currently in talks with 22 other nations to facilitate bilateral trade transactions in the Indian Rupee. This could lead to a more dovish monetary policy approach by the bank’s policymakers and further weigh on the INR. Notably, data showed that inflation in India fell to 6.8% last month from 7.4% in July.Īdditionally, Shaktikanta Das, the Governor of India’s central bank, said he expects inflation to continue easing from September onward. The latest weakness in the Indian Rupee comes after reports showed that the trade deficit in the South Asian country widened to a 10-month high of $24.2 billion in August, marking a substantial increase from the $20.7 billion reported in the month prior.įurthermore, a dip in the annual inflation rate in August put additional pressure on the currency. ![]()
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