USD/INR forecasts change all the time, affected by news events and relative sentiment towards the US and Indian economies and this exchange rate is even more volatile than usual because of the uncertainties around the Coranavirus pandemic.
USD/INR – Weekly range has been between 74.5 to 75 with the rupee falling to a 90-DAY LOW vs the greenback of 75 on July 20.
Prior to the Federal Reserve’s hawkish shift, the US Dollar was trading at 73.27. Resistance can be found at 74.50 and 75.00 while support is strong at 73.80, 73.00, and 72.50. Looking like a 73.70 and 74.70 range in the near term.
In May the Indian rupee had recovered to below 73 per US dollar in the face of greenback weakness matching its previous 1-Year high.
The Federal Reserve’s message to the markets that it was preparing to reduce bond purchases sent most USD/Asian and Emerging Market Currencies higher. INR Forecasts
Last week saw the US Dollar slowly but surely grind its way higher against all its Rivals. USD Forecasts
Any gaining in favour for the rupee is attributed by bank commentators such as HSBC to the attraction of the carry trade — the ability to earn higher interest when holding INR versus other major currencies.
Unlike Latin American countries, which continue to benefit from a U.S. recovery, Asian countries are vulnerable to economic austerity in Saudi Arabia and elsewhere in the Middle East due to the drop in demand for Oil during the Covid pandemic. More than 60% of remittances to India, Bangladesh and Pakistan come from Gulf countries.
The foreign exchange market convention for USD/INR is to quote Indian Rupee as Rupee per US dollar. Thus a higher USD/INR rate actually means one rupee is worth less, that is you can buy more rupee for 1 USD.
You can read about other USD exchange rate forecasts here US Dollar Trends and Forecasts for 2021.
Whether the US dollar will rise or drop in the future versus the rupee is a difficult question and the answer really depends on many factors. The best way to consider the current USD-INR relative value is to check the change in the exchange over a range of periods to the present day. The below table does this for periods going back 10 years.
23 Jul 2021→
|0.1% ▼||1 Week|
30 Jun 2021→
|0% ▲||30 Days|
01 May 2021→
|0.4% ▲||90 Days|
30 Jul 2020→
|0.5% ▼||1 Year|
31 Jul 2016→
|11.4% ▲||5 Years|
02 Aug 2011→
|68% ▲||10 Years|
USD/INR rate change to 30-Jul-2021 → 74.3793
Disclaimer: Please note that the currency forecasts and opinions of our authors should not be taken as a reference to buy or sell any financial product.