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>>USD/INR slips slightly as robust FII inflows underscore confidence in the Indian economy.

USD/INR slips slightly as robust FII inflows underscore confidence in the Indian economy.

crypthub

about 11 hours ago

Currency Movement

The USD/INR pair fell to 82.45, the strongest single‑day rupee gain in three months. The decline follows $850 million of FII purchases in early March. Analysts link the move to robust GDP forecasts, steady inflation, and a positive earnings outlook for FY 2025‑26. Dollar selling by exporters and limited RBI intervention added to the pressure.

Foreign Institutional Investor Inflows

FIIs netted $2.8 billion in Q1 2025, reversing last year’s outflows. Major buying occurred in financial services ($950 million), IT ($620 million), consumer goods, infrastructure, and renewable energy. India’s rank improved to 63rd in the World Bank’s Ease of Doing Business index, and its MSCI Emerging Markets weight rose to 15.2 %. Technical analysis places support at 82.40 and resistance near 82.85.

Economic Fundamentals and Outlook

The IMF projects 6.8 % GDP growth for FY 2025‑26, well above global averages. Inflation eased to 4.5 % and the current‑account deficit narrowed to 1.2 % of GDP, while FX reserves sit at $620 billion. A cautious Fed and favorable global monetary conditions support further rupee strength, with forecasts suggesting an 81.50‑83.50 range through 2025. Continued FII flows and stable domestic policies will be key to sustaining the trend.