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Indian rupee supported by RBI hold, inflows and lower oil
OCBC cited nearly USD 41 billion of capital inflows after the RBI held the repo rate at 5.25%, while USD/INR closed at 95.13.
OCBC analysts Christopher Wong and Sim Moh Siong said the Indian rupee has been supported against the US dollar after the Reserve Bank of India held the repo rate at 5.25%, lowered inflation forecasts, and nudged growth higher.
They pointed to strong capital inflows and a buffer from lower oil and higher reserves, arguing India’s balance of payments is on track for a healthy surplus and that the inflows can support banking system liquidity.
OCBC also noted that the RBI’s measures attracted nearly USD 41 billion of capital inflows, including USD 36.7 billion from FCNR deposits, USD 2.57 billion via overseas foreign currency borrowings, and USD 1.5 billion raised through swap facilities from external commercial borrowings.
On FXStreet’s technical view, USD/INR last closed at 95.13, with bearish momentum on the daily chart intact, support seen around the 95 area, and resistance flagged at 95.40 and 95.70.