USD/INR: Rupee gains over 5% in November, best monthly run since 2015

The Indian National Rupee (INR) extended its winning streak into a fourth day today versus its American counterpart and went onto hit the best levels in three months at 69.592 last hour, before losing ground slightly to now trade near 69.70.

The USD/INR cross is on track to book more than 5% loss in November, as the Rupee sees its best monthly advance since 2015, marking five straight weekly gains.

The key drivers for the ongoing rebound in the Rupee are falling oil prices and broad-based US dollar weakness over the past few trading sessions. The greenback was dumped across the board following dovish comments by the Fed Chair Powell and the recent FOMC minutes, both of which suggested that the Fed is likely to slow its policy tightening amid economic growth concerns.

However, the main reason for the turnaround in the worst-hit emerging markets (EM) currency was the oil-price sell-off, triggered by mounting supply overhang concerns and escalating US-China trade tensions.

Weaker oil prices, usually, help to narrow the current account deficit for the Indian crude importers. India is the world’s third-biggest oil consumer after the US and China.

USD/INR Technical Levels