INR: Biggest One-Day Drop for INR Since Nov, RBI Intervention “Limited”
- USDINR has risen 0.6% following yesterday’s market closure, marking the biggest 1-day gain for the pair since November. That takes spot to its highest level since Dec 17, with Reuters noting that strong dollar demand at the fix weighed on the rupee. Central bank support was described as “limited” by Bloomberg.
- As we have noted previously, any comments citing progress in US-India trade talks have done little to move the needle given the lack of concrete, substantive outcomes from such talks – yesterday, India’s Commerce Minister said a deal is ‘very near’ but he still offered no exact timeline.
- At the same time, persistent outflows from local stocks remain key headwind for the rupee – foreign investors have sold close to $2bn of local equities in 2026 so far, adding to the $17bn of outflows seen in 2025.
- Preliminary PMIs for January highlight the local calendar next week on Friday. In December, the manufacturing PMI extended the sharp drop from October’s 59.2 to 55.0.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
FED FUNDS FUTURES: FFG6 Sold
FFG6 ~3.2K given at 96.410 over a couple of clips, although small rounds of buying follow, small offer left at typing.
MNI: EUROZONE NOV HICP 2.1% Y/Y (2.2% FLASH, 2.1% OCT)
- MNI: EUROZONE NOV HICP 2.1% Y/Y (2.2% FLASH, 2.1% OCT)
- EUROZONE NOV CORE HICP 2.4% Y/Y (2.4% FLASH, 2.4% OCT)
- EUROZONE NOV SERVICES HICP 3.5% Y/Y (3.5% FLASH, 3.4% OCT)
COMMODITIES: WTI Futures Bounce Well Off Tuesday's Lows
A bearish theme in WTI futures remains intact. Moving average studies are in a bear-mode position, highlighting a dominant downtrend. A key support and the bear trigger at $55.99, the Oct 20 low has been breached. Clearance of this level resumes the downtrend and opens $53.53. Key short-term resistance to watch is $61.84, the Oct 24 high. First resistance is at $59.27, the 50- day EMA. A bullish theme in Gold remains intact. The bear phase between Oct 20 - 28 appears to have been a correction and note that the recovery since Oct 28 signals the end of that corrective cycle. Key support to watch is the 50-day EMA, at $4087.6. Clearance of this EMA would signal scope for a deeper retracement. Attention is on key resistance and the bull trigger at $4381.5, the Oct 20 high.
- WTI Crude up $1.29 or +2.33% at $56.53
- Natural Gas up $0.09 or +2.24% at $3.978
- Gold spot up $15.25 or +0.35% at $4318.89
- Copper up $4.6 or +0.86% at $540.4
- Silver up $1.99 or +3.12% at $65.7637
- Platinum up $82.02 or +4.44% at $1928.66
