Indian Rupee Resumes Bearish Trend Against USD Following Technical Breakout

The Indian Rupee has resumed its structural bearish trend against the US Dollar after a technical breakout signaled further weakness for the local currency. Despite Indian inflation rising to 2.75% in January, which dampened expectations for interest rate cuts by the Reserve Bank of India (RBI), the USD's global strength continues to dominate. A recent trade agreement between the US and India, featuring a tariff reduction from 25% to 18%, provided temporary support that has since been fully priced into the market. The US Dollar remains well-supported by robust economic data and heightened geopolitical tensions between the United States and Iran. Market analysts suggest that the focus is shifting back to US economic outperformance as local Indian tailwinds lose their momentum. Consequently, the USD/INR pair is expected to maintain its upward trajectory as global macroeconomic factors outweigh domestic stabilization efforts.