- The USD/INR as of this writing is near the 83.6830 mark.
- Healthy price fluctuations can be seen via trading platforms for speculators.
- However, this doesn’t mean the currency pair is trading as a free floating forex pair.
- The Indian government has clearly taken more control of the USD/INR as it seeks to manage economic conditions.
- Trading of the USD/INR is not encouraged by the government of India which tries to limit speculation within the nation.
The USD/INR traversed an upwards path in July, and on a particularly volatile day on the 25th the currency pair briefly went above the 83.8100 ratio, before falling back to 83.7500 realm. The past week of trading has seen resistance become entrenched near the 83.7400 mark with the occasional outlier above, support below the past week has seemingly situated near the 83.6700 mark but this has also been tested. The important thing to note technically is that the USD/INR has been creating incrementally higher support ratios.
All-Time Highs and Skeptical Notions for the USD/INR
The highs seen this July are now within record high territory for the USD/INR and the Indian government seems quite relaxed by this notion. The Indian economy is mostly transfixed on creating dynamic export conditions for Indian manufacturers, but problems persist regarding inflation in the nation. However, in order to drive higher growth for India the incrementally weaker Indian Rupee may be looked upon as an engine in order to generate more demand for Indian products abroad.
The USD/INR is not trading in a correlated manner to the broad Forex market and little attempt is being given to camouflage the lack of a free floating currency pair. While the U.S will issue its Federal Reserve FOMC monetary policy rhetoric on the last day of July and it will have an impact of global Forex markets in August, the USD/INR may remain unaffected. The U.S Fed seems to be ready to become dovish regarding its interest rate policies, but the USD/INR has not reacted to this notion. While many major currencies globally have gotten stronger in the past few weeks against the USD, the Indian Rupee has fallen to all-time lows.
USD/INR Speculative Considerations
If you are a trader of the USD/INR, you must understand the currency pair is now within a tight grip of the Indian government. Large commercial orders from giant India corporations likely have an affect on the USD/INR momentarily, but the trading being done within Forex for the currency pair is being managed with tight controls.
- It is hard to predict what will happen in the USD/INR for the month of August, except to say the trend technically has certainly been bullish.
- Betting against the upwards trend if you are a speculator of the USD/INR would be a dangerous wager unless you have inside knowledge of future actions by the Reserve Bank of India.
- It should also be said since the re-election of the Indian government the controls on the Indian Rupee have gotten stronger.
Top Forex Brokers
USD/INR Outlook for August 2024
Speculative price range for USD/INR is 83.3600 to 83.7800
Technically the upwards climb of the USD/INR remains rock solid, but it has also taken place with small baby steps when factored mathematically. While it is easy to say the Indian government is controlling the value of the Indian Rupee it also must be said that price velocity is not a real issue. The government of India does not want its citizens speculating on the currency from within the nation. The small changes of value seen within the USD/INR make it difficult to speculate from outside the nation too.
Speculators of the USD/INR need to use price orders including entry ratios, take profit and stop loss commands in order to capitalize on the movement of the currency pair. Patience and the ability to participate in quick hitting trades which eliminate the need for overnight positions is important for small day traders who want to speculate on the USD/INR.
Ready to trade our monthly forecast? Here’s a list of some of the top forex brokers in India to check out.