Higher Oil Prices Weigh on EUR/INR as RBI Intervenes

The EUR/INR currency pair is experiencing pressure due to higher crude oil prices and ongoing short-term selling. The Reserve Bank of India has been actively supporting the rupee with consistent interventions and increased foreign deposit inflows to manage volatility.

The RBI has allowed greater flexibility for banks using its swap facility for FCNR(B)-linked dollar inflows, aiming to limit excess dollar liquidity and tame EUR/INR fluctuations.

EUR/INR faces persistent selling pressure below short- and medium-term averages with a high probability of further declines toward ₹110.1961 to ₹111.3035.