Select Language

EUR/INR retreats from all-time highs around 102.00 ahead of RBI policy

Breaking news

EUR/INR retreats from all-time highs around 102.00 ahead of RBI policy

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.08.05 20:44
EUR/INR retreats from all-time highs around 102.00 ahead of RBI policy

update 2025.08.05 20:44

  • EUR/INR falls back as Indian Rupee gains ground on RBI's intervention.
  • US-India trade tensions would keep the Indian Rupee on the backfoot.
  • Investors await the RBI's monetary policy, which will be announced on Wednesday.

The EUR/INR pair falls back to near 101.30 on Tuesday after revisiting an all-time high around 101.85 earlier in the day. The pair retreated as the Indian Rupee (INR) gained ground, following the Reserve Bank of India's (RBI) intervention into currency markets.

A report from Reuters showed that the RBI likely sold US Dollars via state-run banks before the opening of the Indian market. The RBI's intervention came at a time when the Indian Rupee is continuously underperforming due to escalating trade tensions between the United States (US) and India, and the consistent outflow of foreign funds from Indian equity markets.

Indian Rupee PRICE Last 7 days

The table below shows the percentage change of Indian Rupee (INR) against listed major currencies last 7 days. Indian Rupee was the weakest against the Japanese Yen.

USD EUR GBP JPY CAD AUD INR CHF
USD 0.50% 0.65% -0.59% 0.51% 1.01% 1.17% 0.91%
EUR -0.50% 0.14% -1.11% 0.00% 0.53% 0.75% 0.43%
GBP -0.65% -0.14% -1.25% -0.12% 0.39% 0.47% 0.28%
JPY 0.59% 1.11% 1.25% 1.08% 1.60% 1.84% 1.62%
CAD -0.51% -0.00% 0.12% -1.08% 0.44% 0.72% 0.41%
AUD -1.01% -0.53% -0.39% -1.60% -0.44% 0.22% -0.12%
INR -1.17% -0.75% -0.47% -1.84% -0.72% -0.22% -0.35%
CHF -0.91% -0.43% -0.28% -1.62% -0.41% 0.12% 0.35%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Indian Rupee from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent INR (base)/USD (quote).

Trade tensions between the US and India escalated after President Donald Trump imposed 25% tariffs on imports from New Delhi along with an unspecified penalty for buying a significant amount of Oil from Russia.

Meanwhile, New Delhi has clarified that it will continue to import Oil from Russia, being favorable for the national interest.

In July and two trading days of August, Foreign Institutional Investors (FIIs) have sold Rs. 53,599.59 crores worth of Indian equities cumulatively.

Going forward, investors will focus on the RBI's monetary policy, which will be announced on Wednesday. The RBI is expected to leave the Repo Rate steady at 5.5%.

In the Eurozone, investors will focus on the Retail Sales data for June, which is scheduled to be released on Wednesday. Month-on-month Retail Sales are estimated to have grown by 0.4% after declining 0.7% in May.

Indian Rupee FAQs

The Indian Rupee (INR) is one of the most sensitive currencies to external factors. The price of Crude Oil (the country is highly dependent on imported Oil), the value of the US Dollar - most trade is conducted in USD - and the level of foreign investment, are all influential. Direct intervention by the Reserve Bank of India (RBI) in FX markets to keep the exchange rate stable, as well as the level of interest rates set by the RBI, are further major influencing factors on the Rupee.

The Reserve Bank of India (RBI) actively intervenes in forex markets to maintain a stable exchange rate, to help facilitate trade. In addition, the RBI tries to maintain the inflation rate at its 4% target by adjusting interest rates. Higher interest rates usually strengthen the Rupee. This is due to the role of the 'carry trade' in which investors borrow in countries with lower interest rates so as to place their money in countries' offering relatively higher interest rates and profit from the difference.

Macroeconomic factors that influence the value of the Rupee include inflation, interest rates, the economic growth rate (GDP), the balance of trade, and inflows from foreign investment. A higher growth rate can lead to more overseas investment, pushing up demand for the Rupee. A less negative balance of trade will eventually lead to a stronger Rupee. Higher interest rates, especially real rates (interest rates less inflation) are also positive for the Rupee. A risk-on environment can lead to greater inflows of Foreign Direct and Indirect Investment (FDI and FII), which also benefit the Rupee.

Higher inflation, particularly, if it is comparatively higher than India's peers, is generally negative for the currency as it reflects devaluation through oversupply. Inflation also increases the cost of exports, leading to more Rupees being sold to purchase foreign imports, which is Rupee-negative. At the same time, higher inflation usually leads to the Reserve Bank of India (RBI) raising interest rates and this can be positive for the Rupee, due to increased demand from international investors. The opposite effect is true of lower inflation.


Date

Created

 : 2025.08.05

Update

Last updated

 : 2025.08.05

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

US Dollar Index consolidates above 98.50 amid mixed US PMI signals

The US Dollar Index (DXY), which measures the value of the Greenback against a basket of six major currencies, is holding steady above the 98.50 mark, showing limited movement after Friday's sharp drop.
New
update2025.08.05 23:22

EUR/GBP slips below 0.8700 as soft Eurozone PMI data weighs on sentiment

The Euro (EUR) extends losses for the second consecutive day against the British Pound (GBP) on Tuesday, dragged lower by softer-than-expected Eurozone Purchasing Managers Index (PMI) data.
New
update2025.08.05 21:59

US President Trump: We are getting very close to a deal with China

In an interview with CNBC on Tuesday, United States (US) President Donald Trump said that they are getting very close to reaching a trade deal with China and reiterated that the tariff rate on Indian imports will be raised soon.
New
update2025.08.05 21:32

GBP little changed, outperforms mildly - Scotiabank

Pound Sterling (GBP) is little changed on the day but is a mild outperformer on the session as a result, with the pound relatively safe from the trade uncertainty that is overshadowing some of its peers still, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
update2025.08.05 20:51

EUR consolidates in quiet trade - Scotiabank

Despite firm Spanish and Italian Services and Composite PMI data for July and mild upward revisions for the German data, downward revisions for the French PMIs resulted in minor downward revisions to the Eurozone Services and Composite data for last month, Scotiabank's Chief FX Strategists Shaun Osb
New
update2025.08.05 20:50

CAD slips, strays from fair value - Scotiabank

The Canadian Dollar (CAD) retains a soft undertone but trading patterns are closely aligned with the core majors for the most part, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
update2025.08.05 20:48

Copper price searching for direction - Commerzbank

The Copper market seems to still need to settle after the US tariff surprise. The Copper price traded on the LME increased slightly yesterday after it had declined last week when US President Trump announced that only semi-finished Copper products would be affected by a sector-specific tariff.
New
update2025.08.05 20:46

EUR/INR retreats from all-time highs around 102.00 ahead of RBI policy

The EUR/INR pair falls back to near 101.30 on Tuesday after revisiting an all-time high around 101.85 earlier in the day. The pair retreated as the Indian Rupee (INR) gained ground, following the Reserve Bank of India's (RBI) intervention into currency markets.
New
update2025.08.05 20:43

Gold retreats from two-week high as improving sentiment curbs safe-haven demand

Gold (XAU/USD) is drifting lower on Tuesday, giving back some of the gains after hitting a two-week high on Monday.
New
update2025.08.05 20:42

USD firmer but focus on the Fed outlook may limit gains - Scotiabank

The US Dollar (USD) is inching higher overall this morning adding to modest gains seen Monday as it recovered from the heavy losses sparked by Friday's jobs data.
New
update2025.08.05 20:39

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel