The Indian rupee opened Friday’s session on the back foot against the U.S. dollar, with USD/INR inching up toward the 88.75 mark. This comes despite comments from President Donald Trump suggesting his rapport with Prime Minister Narendra Modi remains strong.
Speaking to reporters in the Oval Office on Thursday, President Trump praised Modi’s decision to curb purchases from Russia and reiterated their personal friendship. “Prime Minister Modi is a great man—a friend of mine,” Trump said, adding that he hopes to visit India next year. Yet, even as both sides insist they are nearing a trade accord, delays have weighed on foreign investor sentiment, prompting sustained selling in Indian equities.
On Thursday, foreign institutional investors offloaded shares worth Rs. 3,263.21 crore, marking a three-day sell-off totalling Rs. 6,214 crore so far in November.
Daily Market Movers: Indian Rupee Trades Lower Against the U.S. Dollar
- The rupee remains under pressure, even as the dollar corrects after the release of October’s US Challenger job-cut data.
- At press time, the US Dollar Index (DXY)—which measures the greenback against six major currencies—has climbed back toward 99.80, after dipping near 99.60 on Thursday.
- October’s Challenger report showed 153,074 planned layoffs—a 183 percent jump from September and the highest October total since 2003—driven in part by increased adoption of artificial intelligence in the private sector.
- Historically, Challenger figures have had limited impact on the dollar. But with the US government shutdown now the longest ever, these data are carrying more weight.
- Softer labor-market signals have bolstered bets on a Fed rate cut. The CME FedWatch tool now assigns a 67 percent chance of a 25 bps cut to 3.50–3.75 percent at December’s policy meeting, up from 62 percent on Wednesday.
Technical Analysis: USD/INR Holds Key 20-Day EMA
USD/INR has climbed to around 88.75, finding support near its 20-day exponential moving average at 88.60. The 14-day Relative Strength Index (RSI) is attempting to climb back above the 60.00 level—clearing that hurdle would signal renewed bullish momentum. On the downside, an earlier low of 87.07 (August 21) stands as critical support, while the all-time high of 89.12 remains the next major resistance.
