• The Indian rupee has recently been hovering around โ‚น 83โ€“84 per US dollar, though rates fluctuate daily due to global and domestic factors.
  • Over the past few months, the rupee has seen modest depreciation against the dollar, reflecting global strength of the dollar and higher global interest rates.
  • Despite global headwinds, forex-reserves, foreign capital inflows and strong remittances have helped buffer extreme volatility for INR.

๐Ÿ”Ž Whatโ€™s Driving the USD/INR Rate Right Now

FactorImpact on USD/INR
๐ŸŒ Global dollar strength & US interest ratesPushes USD up โ†’ INR weakens
๐Ÿ›ข Oil & commodity pricesHigher crude imports raise demand for USD โ†’ pressures INR
๐Ÿ“ฅ Foreign capital inflows / FDI / remittancesBoosts supply of foreign currency โ†’ supports INR
๐Ÿ“‰ Domestic economic conditions & trade deficitLarger trade deficit โ†’ more USD demand โ†’ INR under pressure
๐Ÿ“ฐ Global risk sentiment (geopolitics, markets)Risk-off โ†’ investors move to dollar โ†’ INR may slip

๐Ÿงญ What to Watch in Next Few Weeks

  • Policy announcements from the Federal Reserve (USA) โ€” rate decisions influence global dollar strength.
  • Crude oil price trends โ€” India imports a large portion, so rising oil prices push up USD demand.
  • Foreign institutional investor activity and foreign-direct investment flows into India.
  • Indiaโ€™s trade data, current account balance, and export performance โ€” strong exports and remittances help reduce USD-demand pressure.
  • Global geopolitical events โ€” risk or stability worldwide can influence foreign-capital flow and dollar demand.