RBI Intervention Sustains Rupee Amid Global Headwinds, EUR/INR Consolidates

The Reserve Bank of India (RBI) has been actively intervening in both onshore and offshore markets to support the rupee, keeping it stable despite global headwinds. This intervention has increased demand for the currency and limited the euro's ability to advance, according to Bloomberg.

As a result, the EUR/INR exchange rate remains under short- and medium-term bearish pressure, with indicators mostly negative and a down-move rated very high probability. The currency is currently trading at ₹109.5067, holding below its key short- and medium-term moving averages but above longer-term levels.

Analysts expect EUR/INR to consolidate in the ₹108.9592 to ₹110.0542 range over the next 2 to 3 sessions, with a downside move having a very high probability. A break of resistance may trigger short covering and test upper levels, while support at ₹108.9592 gives way could result in further declines.