The Indian Rupee (INR) holds its early gap down against the US Dollar (USD) during afternoon trading hours in India on Friday. The USD/INR pair trades higher to near 91.20 as the Indian Rupee weakens on rising Oil price and the absence of strong buying interest by foreign investors in the Indian stock market.
Oil prices have risen significantly following threats of United States (US) military action against Iran. According to a report from the Wall Street Journal (WSJ), President Donald Trump is weighing a limited military strike on Iran to pressure Tehran to agree to a nuclear deal.
Currencies from economies that rely on imports of oil to fulfill their energy needs tend to underperform in a high oil price environment.
There seems to be an absence of enthusiasm in Foreign Institutional Investors (FIIs) for increasing their stake in the Indian equity market despite the confirmation of a trade deal between the United States (US) and India. So far in February, FIIs have turned out to be net sellers and have pared their stake worth Rs. 1,076.63 crore, according to data from NSE, even as the trade deal was announced on February 2. On Thursday, overseas investors offloaded their stake worth Rs. 880.49 crore.
Meanwhile, a report from Reuters has shown that traders expect the Reserve Bank of India (RBI) to have intervened in the local and spot markets to support the Indian Rupee.
On the economic data front, India’s HSBC Composite Purchasing Managers’ Index (PMI) data for February has come in marginally lower at 59.3 from 59.4 in January. Activities in the manufacturing sector expanded at a faster pace, while the service sector output edged down.
In addition to weakness in the Indian Rupee, the upbeat US Dollar is also strengthening the pair. During the press time, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades firmly near the fresh four-week high of 98.00 posted on Thursday.
The US Dollar has been outperforming its peers since the release of the Federal Open Market Committee (FOMC) Minutes of the January policy meeting on Wednesday, which showed that officials are not in a hurry to cut interest rates as inflation remains persistently above the Federal Reserve’s (Fed) 2% target. In addition to slightly hawkish FOMC Minutes, risk-off market sentiment due to US-Iran tensions has also improved the US Dollar’s appeal.
During the day, investors will focus on the US preliminary Q4 Gross Domestic Product (GDP) and the US S&P Global PMI data for February.
The US Bureau of Economic Analysis (BEA) is expected to show that the economy rose at an annualized pace of 3%, slower than 4.4% growth seen in the third quarter of 2025.
US Dollar Price This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | INR | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.99% | 1.41% | 1.63% | 0.60% | 0.36% | 0.46% | 0.94% | |
| EUR | -0.99% | 0.43% | 0.66% | -0.36% | -0.63% | -0.43% | -0.05% | |
| GBP | -1.41% | -0.43% | -0.04% | -0.81% | -1.06% | -0.92% | -0.47% | |
| JPY | -1.63% | -0.66% | 0.04% | -1.01% | -1.23% | -0.64% | -0.64% | |
| CAD | -0.60% | 0.36% | 0.81% | 1.01% | -0.28% | 0.36% | 0.34% | |
| AUD | -0.36% | 0.63% | 1.06% | 1.23% | 0.28% | 0.63% | 0.59% | |
| INR | -0.46% | 0.43% | 0.92% | 0.64% | -0.36% | -0.63% | 0.46% | |
| CHF | -0.94% | 0.05% | 0.47% | 0.64% | -0.34% | -0.59% | -0.46% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Technical Analysis: USD/INR aims to hold above 20-day EMA
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USD/INR trades sharply higher at around 91.10 as of writing. Price holds above the 20-day Exponential Moving Average (EMA) at 90.89. The average has turned higher, indicating the pullback has eased.
The 14-day Relative Strength Index (RSI) at 54.99 (neutral) is rising through the midline, backing improving bullish momentum.
The short-term bias improves as the 20-day EMA’s slope recovers, helping to cap dips and support higher lows. On the upside, the price could advance toward the January 28 low of 91.66 if it continues to hold the 20-day EMA. Looking down, the February 3 low of 90.15 will act as key support.
(The technical analysis of this story was written with the help of an AI tool.)
(This story was corrected on February 20 at 11:04 GMT to say in the seventh paragraph that the US Dollar Index trades firmly near the fresh four-week high of 98.00, not three-week high)
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