Indian rupee added some weight earlier today as the investment inflow into the country’s stock markets continued to grow and the major Indian stock indexes – SENSEX and NIFTY – are in the green zone. USD/INR decreased by 5 Indian paise from the previous week close at 39.62 to 39.57 today.
Recent Reserve Bank of India intervention of a large amount ($52 billion worth) of rupees into the economy to prevent fast rupee appreciation pushed rupee down a bit. Combined with latest demand for dollars from the oil companies which is usual at the end of the month, this factor pressed on rupee greatly. But as it seems, all bad news are unable to push Indian currency below the 39.80 mark, which can be considered as a major resistance point for USD/INR now.
The growing demand for the rallying Indian shares is very likely to keep the rupee price above the minimum value, as the foreign investors interested in high yielding equities switch from undecided carry trade to the emerging markets.
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