USD/INR: Indian Rupee Fluctuates This Week Feb 14; India’s Forex Reserves Data on Feb 21

The USD/INR exchange rate exhibited fluctuations this week, reflecting a mix of market factors. Starting at 87.469 on February 10, 2025, the pair saw a 0.17% decline, trading at 86.84 on February 14, 2025, as of 3:12 PM. The highest level recorded during the week was 87.997, while the lowest touched 86.327. The fluctuations are driven by market sentiment, global economic trends, and domestic factors impacting the Indian rupee.

On February 7, 2025, the Reserve Bank of India (RBI) reduced the repo rate by 25 basis points to 6.25%, marking the first rate cut in nearly five years. This decision aims to stimulate economic growth amid easing inflation rates.

RBI Intervention Boosts Near Forward Premiums

The 1-month USD/INR forward premium rose to 22.5 paisa on Wednesday from 17.5 paisa last Friday, as RBI intervened heavily on Monday and Tuesday to prevent the rupee from crossing 88.

FII/FPI Trading Activity

On February 13, 2025, Foreign Institutional Investors (FII/FPI) recorded a buy value of ₹12,124 crore and a sell value of ₹14,913.91 crore, resulting in a net outflow of ₹2,789.91 crore from the Indian markets.

India FX Reserves Data Release Next Week

India’s foreign exchange reserves data will be released next week on February 21, 2025, indicating changes in the RBI’s holdings of foreign currencies, gold, and SDRs. This data can impact currency stability and market sentiment. As per RBI, India’s forex reserves rose $1.05 billion to $630.607 billion for the week ended January 31, 2025.

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