Indian Rupee Trading At 90.4775 Against The Dollar

Financial Market Overview

USDINR

The Indian rupee opened at 90.4325 against the U.S. dollar on Friday, compared to its previous close of 90.3675 on Thursday. The Indian rupee is anticipated to open slightly stronger today, indicated by the 1-month non-deliverable forward in the 90.27-90.30 range against the U.S. dollar, following its all-time low close of 90.3675 on Thursday, which was attributed to corporate and positional dollar demand, though RBI intervention prevented a sharper drop. However, this relief may be temporary as the currency remains under pressure from persistent merchant and portfolio outflows, with foreign investors net selling $2.5 billion this month, and uncertainty surrounding U.S.-India trade negotiations continuing to weigh on the rupee. The dollar's recent weakness, due to a less-hawkish U.S. Federal Reserve outlook and liquidity injections, is supporting the rupee for now, but the Indian currency is still poised for a weekly loss of about 0.5%.

­United States 10-Year rates were 4.155% on the bond markets, while 2-year Treasury yields were 3.528%. The DXY index trading around 98.370.

 

At the time of writing, the USDINR was trading at 90.4775/90.4875.

 

EURUSD

The EUR appreciated against the USD, rising by 0.41% to trade around 1.1742, primarily driven by broad USD weakness after the US Federal Reserve cut interest rates by 25 basis points to 3.50%-3.75% and Chair Jerome Powell hinted at future policy flexibility. This dovish Fed action, coupled with weaker-than-expected US jobless claims data and a narrowing trade deficit, reinforced expectations of further policy easing and a loss of momentum in the US economy. In contrast, European Central Bank President Christine Lagarde maintained that the ECB's current policy stance is appropriate, providing additional support to the Euro, even as the Eurozone's calendar was quiet.

 

At the time of writing, the EURUSD was trading at 1.1736/1.1737.

 

GBPUSD

Following the US Federal Reserve's third consecutive interest rate cut and a dovish outlook, the GBPUSD maintained a bullish trajectory, but found a technical resistance point near 1.3400 on Thursday. The Fed's rate cut, coupled with weaker-than-expected US Initial Jobless Claims, contributed to broad US Dollar weakness and heightened market expectations for further, potentially faster, Fed rate cuts despite Chair Jerome Powell's cautious stance against aggressive easing into 2026. Looking ahead, the current quiet end to the week will be followed by a hectic UK economic data schedule next week, which includes key releases like UK labor statistics and PMI on Tuesday, CPI figures on Wednesday, the pivotal Bank of England interest rate decision on Thursday, and finally, UK Retail Sales on Friday, all of which will be closely watched by Cable traders.

 

At the time of writing, the GBPUSD was trading at 1.3392/1.3393.

 

USDJPY

The Japanese Yen is weakening against the USD due to a positive market sentiment reducing safe-haven demand and growing concerns over Japan's fiscal health, exacerbated by Prime Minister Sanae Takaichi's spending plans. However, expectations for an imminent rate hike by the Bank of Japan, possibly as early as next week following strong inflation data, are limiting the JPY's decline. This hawkish BoJ outlook stands in stark contrast to the dovish Federal Reserve, which recently cut rates and, despite projecting only one more cut in 2026, has encouraged market bets for more substantial rate cuts. This divergence in policy expectations, with the USD near a two-month low, is expected to cap the USDJPY pair's recovery, leading traders to await the crucial December 18-19 BoJ policy meeting for clear directional guidance.

 

 

At the time of writing, the USDJPY was trading at 155.695/155.699.