Forex Outlook: How RBI Dollar Sales Might Shape the INR’s Destiny

The global market scenario has been in a sense of turmoil as concerns over an impending recession are on the rise which would potentially affect India as well. With the Impending fall of the US suspected and inflation soaring the RBI has made a lot of tactical moves that might’ve saved India from a lot of issues. 

The RBI has been in focus for a few weeks now as they make a few adjustments in their portfolios. 

Previously the Reserve Bank of India acted smartly as they reinforced their commitment to diversifying into gold by acquiring 9 tonnes in the September 2023 quarter. As of 2023 RBI’s gold purchase had amounted to 19.3 tonnes and the central bank had consistently been adding to the RBI gold reserves since 2017. 

Last week, the RBI MPC meeting 2023 had created a positive outlook as well for India’s future with its several announcements. However, things seem to be dire for the status of the Indian rupee.

On Monday, the RBI had sold US dollars to curb the losses in the rupee and the currency had opened trading near its lifetime low as per an article by Reuters. 

The rupee had opened at 83.3850 against the US dollar, thereby maintaining the same level as Friday’s closing. The currency had previously hit a lifetime low of 83.42 on November 10th. 

But what’s the technical outlook looking like today? 

Technical Outlook by Commodity Samachar: 

The analysts at Commodity Samachar have been watching the situation keenly and the USD INR movement has been displayed as per the technical analysis below: 

USD INR has broken out from the symmetrical triangle now and is trading up but the consolidation is in the narrow range and price trading is in the resistance zone. 

After breaking the resistance, we can look forward to an upside move. 

USD INR Buy Above 83.69, Stop loss will be at 83.00, targets can be seen up to 85.00. 

Commodity Samachar
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Also Read: US Dollar in Focus: Will the US CPI give final cues for Fed meeting? , India’s Rise: What’s It’s Position Amidst 2024 Global Soft Landing?

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