Learn about the Indian foreign exchange market

Learn about the Indian foreign exchange market

Foreign Exchange Market in India

The beginning of the 20th century was marked by the rapid growth of emerging markets, an increase in the well-being of second and third-tier countries, and reliefs in the field of currency control. Against this background, the BRICS money markets have become attractive not only for international financial conglomerates but also for private speculators. Today, we will talk about the currency market of India, which has its specifics.

It should be noted that India is somewhere between China and Africa in terms of development. Still, in the future, it can make a rapid leap forward. There are the following objective reasons for this:

1. The Indian government is multi-party, as a result, it takes into account the interests of various social groups.

2. The Indian government does not impose too strict restrictions on the movement of foreign capital. For example, in China, investors have to work through the offshore territory. And this fact leaves a certain imprint on the economy.

3. Compared to Africa, many countries of which are still in acute political and economic crisis, everything is calm on the territory of Hindustan.

Factors Affecting Indian Rupee

The first thing to start with is the analysis of the current meteorological situation. At first glance, this statement seems absurd, since the rupee is not an agricultural commodity. Still, long-term observations show that the Reserve Bank of India is sensitive to inflationary trends. And the latter, in turn, is highly dependent on crops. In developed countries, this problem is not relevant. Still, in India, where most of the population lives below the poverty line, rising food prices can provoke serious discontent and even unrest.

Despite the development of technology and the construction of large industrial complexes, many Indians are directly or indirectly engaged in agriculture. This means that the bankruptcy of landowners due to poor harvest negatively affects the labor market. But still, in such a situation, the government adopts various programs aimed at supporting those in need. Therefore, it is safe to trade in India, and Alpari Forex trading in India provides a great opportunity to make your trading even more comfortable.

Technical Analysis of Indian Rupee

Many traders believe that trading USD/INR is much more complicated than other popular pairs since their techniques do not work well on it. This is a misconception since the rupee is no different from other assets. In particular, it can be investigated using classic and custom indicators.

If indicators are not credible, then levels, tangents, and various channels come to the rescue. In general, there are no restrictions on the toolkit when analyzing USD/INR. The main thing is to remember the following rules:

1. All decisions are best made on large time frames.

2. If the trend on USD/INR contradicts the trend formed on the dollar index, it is reasonable to refrain from trading.

3. Strong levels often coincide with the marks at which the Reserve Bank of India intervenes, so the forecast accuracy can be significantly improved by taking into account the statements of the head of the RBI.

Keep updated with the situation in the country and trade safely.