Trading USD/INR
The USD/INR currency pair is a popular choice among traders looking for a safe haven. The USD is the most traded currency on the international forex market while the INR is the 17th most traded. Interestingly, the INR is somewhat protected from volatility by the buying and selling of USD/INR by the Reserve Bank of India (RBI).
This tutorial will break down key insights needed to speculate on the USD/INR, including the benefits of live trading the dollar against the rupee, economic factors to consider, how to measure exchange rate value, reading candlestick charts, and more. We have also listed the top supporting brokers.
USD/INR Trading Brokers
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1
FOREX.comActive Trader Program With A 15% Reduction In Costs
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$1000.01 Lots1:50NFA, CFTCForex, Stocks, Futures, Futures OptionsMT4, MT5, TradingView, eSignal, AutoChartist, TradingCentralWire Transfer, Credit Card, Debit Card, Visa, Mastercard, Skrill, Neteller, ACH TransferUSD, EUR, GBP, CAD, AUD, JPY, CHF, PLN -
2
NinjaTrader
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$00.01 Lots1:50NFA, CFTCForex, Stocks, Options, Commodities, Futures, CryptoNinjaTrader Desktop, Web & Mobile, eSignalACH Transfer, Debit Card, Wire TransferUSD -
3
OANDA USCFDs are not available to residents in the United States.
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$00.01 Lots1:50NFA, CFTCForex, Crypto with Paxos (Cryptocurrencies are offered through Paxos. Paxos is a separate legal entity from OANDA)OANDA Trade, MT4, TradingView, AutoChartistWire Transfer, Visa, Mastercard, Debit Card, ACH TransferUSD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD -
4
IGForex trading involves risk. Losses can exceed deposits.
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$00.01 Lots1:30 (Retail), 1:250 (Pro)FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOBCFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread BettingWeb, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentralPayPal, Wire Transfer, Mastercard, Credit Card, Visa, Debit CardUSD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD -
5
Interactive Brokers
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$0$1001:50FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMAStocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, CryptocurrenciesTrader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentralCheque, ACH Transfer, Wire Transfer, Automated Customer Account Transfer Service, TransferWise, Debit CardUSD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF -
6
Videforex20% to 200% Deposit Bonus
$250$0.011:500Binary Options, CFDs, Forex, Indices, Commodities, CryptoTradingViewSkrill, Perfect Money, Bitcoin Payments, Neteller, Credit Card, Visa, Mastercard, Ethereum PaymentsUSD, EUR, GBP, AUD, RUB -
7
CloseOption$10 Welcome Gift
$5$1National Bank of GeorgiaBinary Options on Forex & CryptosOwnPayPal, WebMoney, Mastercard, Perfect Money, Wire Transfer, Bitcoin Payments, Ethereum PaymentsUSD -
8
DNA Markets
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$1000.01 Lots1:500ASICCFDs, Forex, Indices, Commodities, Stocks, CryptoMT4, MT5Credit Card, Debit Card, Wire Transfer, BPAY, Skrill, Neteller, Bitcoin Payments, Bitwallet, AstroPay, MastercardUSD, EUR, GBP, CAD, AUD, NZD, SGD -
9
Coinexx100% Deposit Welcome Bonus
0.001 BTC0.01 Lots1:500Forex, Commodities, Indices, CryptocurrenciesMT4, MT5Bitcoin Payments, Ethereum PaymentsUSD -
10
IQCent20% to 200% Deposit Bonus
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$250$0.011:500IFMRRCBinary Options, CFDs, Forex, Indices, Commodities, CryptoOnline Platform, TradingViewCredit Card, Debit Card, Wire Transfer, Bitcoin Payments, Ethereum Payments, Visa, MastercardUSD, EUR
Here is a short summary of why we think each broker belongs in this top list:
- FOREX.com - FOREX.com continues to uphold its stature as a premier FX broker, offering over 80 currency pairs and boasting some of the most competitive fees in the industry. With EUR/USD spreads dipping as low as 0.0 and $5 commission per $100k, it stands out. Moreover, its SMART Signals help to identify price behaviors across numerous major currency markets.
- NinjaTrader - NinjaTraders supports the trading of popular currencies including the EUR/USD. The software also offers advanced features to streamline the trading experience, including complex order types like market if touched (MIT) and one cancels other (OCO).
- OANDA US - OANDA offers a diverse selection of 68 currency pairs, more than many alternatives. The broker’s in-house platform offers superb day trading capabilities via powerful TradingView charts, including 65+ technical indicators and 11 customizable chart types.
- IG - IG offers an above-average suite of 80+ currency pairs on its proprietary web platform, mobile app or MetaTrader 4, with more advanced charts and forex analysis tools available on the ProRealTime software. Forex spreads are competitive based on tests, starting from 0.1 pips on majors like the EUR/USD.
- Interactive Brokers - IBKR presents an extensive range of over 100 major, minor, and exotic forex pairs, surpassing the offerings of nearly all leading alternatives, though not CMC Markets. Forex trading occurs over multiple platforms and boasts institutional-grade spreads starting from 0.1 pips and 20 complex order types, including brackets, scale, and one-cancels-all (OCA) orders.
- Videforex - Trade 35 major, minor and exotic forex pairs through CFDs with floating spreads from 0.1 pips. Alternatively, binary options allow you to speculate on rising and falling prices with a fixed stake and payout.
- CloseOption - CloseOption offers binaries on 25+ forex pairs, including majors like EUR/USD and a few minors like AUD/JPY. Payouts vary by currency, with decent typical payouts of 75% for GBP/USD.
- DNA Markets - DNA Markets continues to deliver an excellent environment for forex traders with 50+ currency pairs and low spreads from 0.0 pips on the EUR/USD during tests. The MetaTrader 4 platform, available on desktop, web and mobile, was also designed specifically for forex trading.
- Coinexx - Trade 70 major, minor and exotic forex pairs with ultra-low ECN spreads and fast execution via the MT4 or MT5 platforms. There are also zero SL/TP limits and automated forex trading is well catered for.
- IQCent - IQCent traders can access CFDs or binary options on 45+ forex pairs. CFD spreads start from 0.3 pips and binary options payouts are decent up to 95%. This is competitive compared to Pocket Option, for example, offering forex payouts up to only 81%.
Trading USD/INR Comparison
| Broker | Forex Assets | EUR/USD Spread | Forex App Rating | Minimum Deposit | Regulator |
|---|---|---|---|---|---|
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80+ | 1.2 | / 5 | $100 | NFA, CFTC |
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50+ | 1.3 | / 5 | $0 | NFA, CFTC |
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65+ | 1.6 | / 5 | $0 | NFA, CFTC |
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80+ | 0.8 | / 5 | $0 | FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB |
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100+ | 0.08-0.20 bps x trade value | / 5 | $0 | FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA |
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35 | Floating from 0.1 pips | / 5 | $250 | - |
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20+ | No fee - payouts approx. 80% (Copper) | - | $5 | National Bank of Georgia |
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50+ | 1.0 | / 5 | $100 | ASIC |
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60+ | From 0.0 pips | - | 0.001 BTC | - |
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49 | 0.3 | / 5 | $250 | IFMRRC |
FOREX.com
"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."
Christian Harris, Reviewer
FOREX.com Quick Facts
| Bonus Offer | Active Trader Program With A 15% Reduction In Costs |
|---|---|
| GBPUSD Spread | 1.3 |
| EURUSD Spread | 1.2 |
| EURGBP Spread | 1.4 |
| Total Assets | 80+ |
| Leverage | 1:50 |
| Platforms | MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral |
| Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN |
Pros
- Alongside a choice of leading platforms, FOREX.com offers a superb suite of supplementary tools including Trading Central research, SMART Signals pattern scanner, trading signals, and strategy builders.
- The in-house Web Trader continues to shine as one of the best-designed platforms for aspiring day traders with a slick design and over 80 technical indicators for market analysis.
- FOREX.com offers industry-leading forex pricing starting from 0.0 pips, alongside competitive cashback rebates of up to 15% for serious day traders.
Cons
- There’s no negative balance protection for US clients, so you may find yourself owing more money than your initial deposit into your account.
- FOREX.com's MT4 platform offers approximately 600 instruments, significantly fewer than the over 5,500 available on its non-MetaTrader platforms.
- Despite increasing its range of instruments, FOREX.com's product portfolio is still limited to forex and CFDs, so there are no options to invest in real stocks, real ETFs or real cryptocurrencies.
NinjaTrader
"NinjaTrader continues to meet the demands of active futures traders looking for low fees and premium analysis tools. The platform hosts top-rate charting features including hundreds of indicators and 10+ chart types."
Tobias Robinson, Reviewer
NinjaTrader Quick Facts
| GBPUSD Spread | 1.6 |
|---|---|
| EURUSD Spread | 1.3 |
| EURGBP Spread | 1.6 |
| Total Assets | 50+ |
| Leverage | 1:50 |
| Platforms | NinjaTrader Desktop, Web & Mobile, eSignal |
| Account Currencies | USD |
Pros
- NinjaTrader is a widely respected and award-winning futures broker and is heavily authorized by the NFA and CFTC
- NinjaTrader continues to deliver comprehensive charting software for active day traders with bespoke technical indicators and widgets
- You can get thousands of add-ons and applications from developers in 150+ countries
Cons
- Non forex and futures trading requires signing up with partner brokers
- There is a withdrawal fee on some funding methods
- The premium platform tools come with an extra charge
OANDA US
"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."
OANDA US Quick Facts
| GBPUSD Spread | 3.4 |
|---|---|
| EURUSD Spread | 1.6 |
| EURGBP Spread | 1.7 |
| Total Assets | 65+ |
| Leverage | 1:50 |
| Platforms | OANDA Trade, MT4, TradingView, AutoChartist |
| Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD |
Pros
- The broker's API facilitates access to 25 years of deep historical data and rates from 200+ currencies
- Day traders can enjoy fast and reliable order execution
- The broker offers a transparent pricing structure with no hidden charges
Cons
- The range of day trading markets is limited to forex and cryptos only
- There's only a small range of payment methods available, with no e-wallets supported
- It's a shame that customer support is not available on weekends
IG
"IG continues to provide a comprehensive package with an intuitive web platform and best-in-class education for beginners, plus advanced charting tools, real-time data, and fast execution speeds for experienced day traders."
IG Quick Facts
| GBPUSD Spread | 0.9 |
|---|---|
| EURUSD Spread | 0.8 |
| EURGBP Spread | 0.9 |
| Total Assets | 80+ |
| Leverage | 1:30 (Retail), 1:250 (Pro) |
| Platforms | Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral |
| Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD |
Pros
- IG offers an extensive collection of professional and engaging educational resources, including webinars, articles, and analysis
- As a well-established broker, IG operates under strict regulatory guidelines in multiple jurisdictions, maintaining a high level of trust
- The ProRealTime advanced charting platform is free as long as certain modest monthly trading activity requirements are met
Cons
- Stock and CFD spreads still trail the cheapest brokers like CMC Markets based on tests
- Beginners might find IG’s fee structure complex, with various fees for different types of trades or services, potentially leading to confusion or unexpected charges
- While there is negative balance protection in the UK and EU, there is no account protection or guaranteed stop losses for US clients
Interactive Brokers
"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."
Interactive Brokers Quick Facts
| GBPUSD Spread | 0.08-0.20 bps x trade value |
|---|---|
| EURUSD Spread | 0.08-0.20 bps x trade value |
| EURGBP Spread | 0.08-0.20 bps x trade value |
| Total Assets | 100+ |
| Leverage | 1:50 |
| Platforms | Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral |
| Account Currencies | USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF |
Pros
- The new IBKR Desktop platform takes the best of TWS while adding bespoke tools like Option Lattice and Screeners with MultiSort to create a genuinely impressive trading experience for day traders at every level.
- While primarily geared towards experienced traders, IBKR has made moves to broaden its appeal in recent years, reducing its minimum deposit from $10,000 to $0.
- IBKR is one of the most respected and trusted brokerages and is regulated by top-tier authorities, so you can have confidence in the integrity and security of your trading account.
Cons
- TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
- You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
- IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.
Videforex
"Newer traders will find a lot to enjoy about trading binary options on Videforex's easy-to-use proprietary platform, as well as the broker's copy trading solution. Payouts also remain higher than most alternatives climbing to 98%."
Videforex Quick Facts
| Bonus Offer | 20% to 200% Deposit Bonus |
|---|---|
| GBPUSD Spread | Floating from 0.1 pips |
| EURUSD Spread | Floating from 0.1 pips |
| EURGBP Spread | Floating from 0.1 pips |
| Total Assets | 35 |
| Leverage | 1:500 |
| Platforms | TradingView |
| Account Currencies | USD, EUR, GBP, AUD, RUB |
Pros
- Traders can earn up to 98% payouts on 100+ assets with the broker’s binary options, which is in line with competing brands like IQCent
- Videforex allows you to enter positions with just ¢0.01
- Global clients can make free and fast transfers via a wide range of payment types, from credit cards to cryptocurrencies
Cons
- US clients aren’t accepted due to legal restrictions
- No MetaTrader 4 integration
- The broker isn’t overseen by a trusted regulatory agency
CloseOption
"CloseOption is a good pick for traders seeking a user-friendly binary options platform with high payouts and joining bonuses."
CloseOption Quick Facts
| Bonus Offer | $10 Welcome Gift |
|---|---|
| GBPUSD Spread | No fee - payouts approx. 80% (Copper) |
| EURUSD Spread | No fee - payouts approx. 80% (Copper) |
| EURGBP Spread | No fee - payouts approx. 80% (Copper) |
| Total Assets | 20+ |
| Platforms | Own |
| Account Currencies | USD |
Pros
- Multiple global payment methods are available
- Free demo account
- New traders can get started with a $5 minimum deposit
Cons
- CloseOption is not regulated by a well-regarded trading authority
- Binary options are only available on fiat and digital currencies
- Clients need to deposit $50,000+ to qualify for the best payouts
DNA Markets
"DNA Markets is an excellent choice for short-term traders familiar with the MetaTrader platforms. The smooth sign-up process also makes it easy to get started while the $100 minimum deposit is accessible. That said, DNA Markets trails the top brokers in education, research and mobile trading. "
DNA Markets Quick Facts
| GBPUSD Spread | 1.0 |
|---|---|
| EURUSD Spread | 1.0 |
| EURGBP Spread | 1.0 |
| Total Assets | 50+ |
| Leverage | 1:500 |
| Platforms | MT4, MT5 |
| Account Currencies | USD, EUR, GBP, CAD, AUD, NZD, SGD |
Pros
- After a recent upgrade, there are now over 800 assets available to trade via CFDs, with a particularly impressive range of 120+ cryptos
- Convenient account funding is available with 7 base currencies, a $100 deposit and a wide range of payment methods
- DNA Markets offers top-rate platforms and charting tools for day traders with access to MT4 and MT5
Cons
- Despite access to MT4 and MT5, there is no proprietary trading app for seamless account management whilst on the go
- Although it continues to strengthen its client base and reputation, DNA Markets lacks the track record of top brokers like Vantage
- Unlike many alternatives, there are limited educational and research tools for traders seeking an all-in-one solution
Coinexx
"Traders seeking highly leveraged CFDs with a broker that uses crypto as a base account currency will find a good match in Coinexx. The ECN model also offer tight spreads from 0 pips. On the downside, traders should note the weak regulatory oversight."
Coinexx Quick Facts
| Bonus Offer | 100% Deposit Welcome Bonus |
|---|---|
| GBPUSD Spread | From 0.0 pips |
| EURUSD Spread | From 0.0 pips |
| EURGBP Spread | From 0.0 pips |
| Total Assets | 60+ |
| Leverage | 1:500 |
| Platforms | MT4, MT5 |
| Account Currencies | USD |
Pros
- Full range of investments including cryptos
- Free VPS for active traders
- Demo account available to prospective traders
Cons
- Limited educational materials for new traders
- No regulatory oversight reduces safety
- No copy trading service for aspiring investors
IQCent
"IQCent will appeal to day traders looking for a straightforward binary options and CFD trading platform with low fees, a range of accounts, and copy trading. Getting started takes less than 1 minute and a $250 deposit. "
IQCent Quick Facts
| Bonus Offer | 20% to 200% Deposit Bonus |
|---|---|
| GBPUSD Spread | 0.8 |
| EURUSD Spread | 0.3 |
| EURGBP Spread | 0.8 |
| Total Assets | 49 |
| Leverage | 1:500 |
| Platforms | Online Platform, TradingView |
| Account Currencies | USD, EUR |
Pros
- The proprietary terminal offers TradingView-powered charts which deliver dozens of technical indicators and studies
- CFD trading fees are competitive based on tests, including 0.7 pips on major forex pairs such as EUR/USD
- IQCent is one of the few binary options brokers that also offers a copy trading service for hands-off traders
Cons
- IQCent trails binary brokers like Quotex with its narrow investment offering of around 100 assets with no stocks
- There's no automated trading support for algo traders
- The broker is not overseen by a respected regulator, though this is common among binary options firms
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USD/INR Meaning
The USD/INR currency pair is simply the value of the US dollar against the Indian rupee. The forex pair tells the trader how many rupees (the quote currency) are needed to purchase one dollar (the base currency).
Why Trade USD/INR?
The USD/INR is a popular option out of the exotic forex pairs. As India’s economy and the business climate continue to develop and grow, the currency’s outlook is improving. Investing in the pair has become an attractive opportunity for forex traders.
- Popularity – The USD is the most traded currency on the FX market. It accounts for approximately 87% of all foreign exchange transactions. The INR is the 17th most traded currency worldwide, with approximately $58 billion worth of INR exchanged daily.
- Safety – The USD is considered to be the world’s most stable currency. The bulk of global foreign-exchange trading involves the USD.
- Protected from volatility – When trading USD/INR, the Indian rupee trades on a ‘managed float’. This means the INR spot rate is market-determined but somewhat protected from volatility by the buying and selling of USD/INR from the Reserve Bank of India (RBI).
- Prevalence – The USD is one of the most popular reserve currencies. Its size leads to an abundance of historical exchange rate data on the pairing available for download from the likes of the NSE, even 20-year charts. This also makes it relatively straightforward to follow.
History Of USD/INR Exchange Rate
Today, the Indian currency’s value is lower than the USD, but this was not the case before. When India became independent in 1947, the situation was very much different. 1 INR used to be equal to 1 USD.
There are multiple arguments about why 1 USD/INR in 1947 held more value. But, it is most commonly believed that there was no metric system. This meant all currencies held the same value.
Others believe that before 1947, India was a British-ruled state, so the value of INR was higher because the value of GBP was higher. It is believed that 1 pound was equal to 13.37 rupees in 1947, and that’s why the value of USD should be INR 4.16 in 1947.
Since India’s independence in 1947, the value of INR against USD has consistently gone down. The US federal fund rates have mainly been flat at around 0.25% in the last ten years. This also plays a role in the current value of INR to USD.
Why USD Is Stronger Than INR
The USD is stronger because it is kept by most global central banks in reserves. A large share of international transactions is also done with the dollar. The durability of the USD against INR also comes down to the strength of the US economy – people want to hold the US dollar because it is considered safe.
The Reserve Bank of India (RBI) also often buys US dollars from the market. This causes a rise in rupee liquidity. The increase in the supply of rupee without a corresponding demand then makes the rupee depreciate further against the dollar.
That said, there have been times when the strength of the USD/INR has switched. In the past, a record inflow of dollars through Foreign Portfolio Inflows (FPI) and other modes have increased the demand for the rupee. This has led to the rupee rising against the US dollar.
USD/INR Forecast
When investing, it is important to have a good idea of future trends and predictions for tomorrow. You can view today the USD INR pair by looking at the latest news and charts to see its performance.
The USD has outperformed the emerging-market Indian rupee over the past few years. The stabilization in the currency pairing has been partly down to intervention from the Reserve Bank of India (RBI).
The USD to INR reached its highest rate ever in May 2022, amounting to 77.89 INR. However, the all-time low was established in March 1973 at 7.19 INR.
The US Economy
The United States’ economy is the largest in the world. It is worth knowing the make-up of the US economy and what influences the USD, to implement an effective strategy when trading the FX pair.
- Like any other fiat currency, the value of the USD depends on the economic activity and outlook of the United States.
- The largest contributor to the US economy is its service sector. This includes finance, real estate, insurance, professional and business services, plus healthcare.
- The US has a relatively open economy. This means it can facilitate flexible business investment and direct foreign investment in the country.
- The USD can be influenced by labor market data. This includes non-farm payroll (NFP) results, unemployment levels, GDP and inflation data, as well as interest rates set by the Fed.
- The value of the USD on the world market can also be influenced by market psychology and geopolitical risk that varies at different times.
The Indian Economy
India’s economy has experienced rapid growth thanks to its farming and services industries. Understanding its drivers will help you make informed decisions when investing in the USD/INR.
- India is the sixth-largest global economy. It also has one of the largest populations among nations, with more than 1 billion inhabitants.
- India has a diversified economy largely based on services, industry, and farming. Many of India’s workers rely on agriculture.
- Services, such as IT, business outsourcing, and software, account for about 50% of India’s economic growth.
- India’s economy has been fairly liberal since the 1990s. This has helped to boost economic growth over the last two decades.
- However, inflexible business regulation, widespread corruption, and ongoing poverty are a few examples of events that often prevent the Indian economy from expanding further.
- Financial analysts are also saying that high oil prices will create short-term turbulence. However, India is less affected by the Ukraine conflict because of its geographical placement. New infrastructure spending and policies coming in 2023 are set to boost the country’s economy.
Note that high US Fed interest rates tend to attract investment away from emerging market countries like India. This is because investors seek rising returns in the US.
Measuring USD/INR Value
The value of the USD/INR can be measured by the U.S. Dollar Index (USDX). This is made up of a range of currencies affiliated with the major trading partners of the United States. These include the Euro (57.6% of the index), the Japanese Yen (13.6%), the British Pound (11.9%), the Canadian Dollar (9.1%), and the Swedish Krona (4.2%), and the Swiss Franc (3.6%). The index goes up when the USD gains strength against these currencies and falls when it weakens.
Yearly averages and charts vary, but following the USDX is a great way to stay on top of market sentiment.
Reading A USD INR Candlestick Chart
There are many different types of live forex charts available on trading platforms. However, a daily or weekly candlestick chart is often what investors find most useful when trading USD/INR. Price history charts are available at many top brokers, such as Oanda, and can give a view of yesterday’s price as well as future exchange rate forecasts.
A candlestick chart is essentially a graph used to analyze the spot rate movements of currencies, such as USD/INR futures, securities, or derivatives. The technical chart represents four key pieces of information over a certain time frame – the open and the close and the high and the low.
Here are five key facts that will help you to read a live USD IND candlestick chart:
- The ‘what’ (meaning USD/INR price action) is more significant than the ‘why’ (i.e., current earnings, news today, etc.)
- All the present and available information is reflected within the price
- Sellers and buyers can move markets based on anticipations and emotions, such as fear and greed
- Forex markets tend to fluctuate
- The real price might not reflect the underlying value
Importantly, if you set a USD/INR candlestick chart to a 30-minute time period, each candle will form over 30 minutes. If the candlestick chart is set to a 15-minute time period, every candle will form over 15 minutes.
USD to INR charts can span 10 years or 20 years, or you can get graphs for 5 years. They can show the day’s highs and lows, USD versus INR trends, and forecasts for tomorrow and provide direct quotes via the trading platform. Support and resistance levels can also be plotted.
Leading brokers also convert research reports into user-friendly trading materials and provide recommendations as to what today’s USD to INR trend may be. Live, daily, and weekly forecasts are also commonplace with quarterly and monthly averages, market watch lists, and user-friendly pip calculators. For money control, volatility indexes, and forward premiums, you may need to consult the broker’s support team.
When you trade USD/INR, you must also take into account the hedging cost, USD INR closing rate, swap rates, spreads, commissions, and other fees your broker may charge.
Find out more about forex trading technical analysis and strategies.
Final Word On Trading USD/INR
The USD/INR forex pair offers good opportunities for traders looking to get involved with exotic pairs. The INR is somewhat protected from volatility, and the USD is considered to be the most stable currency on the market. But before you start margin trading, it is important to understand what influences the USD/INR exchange rate and the strength of each economy. Use our guide to get started.
FAQs
How Do I Trade USD In INR Options?
If you are expecting the USD to INR live pair to move up (the dollar to appreciate), then you can buy a call option on the USD v INR pair. If you are expecting the USD to INR conversion to move down (the INR to appreciate), then you can buy a put option on the USD/INR pair.
Is IND/USD A Restricted Currency?
The IND is often considered to be a restricted currency. Fund transfers in this currency are typically not allowed outside of India, though online trading offshore is still possible.
What Is The Highest Ever USD To INR Rate?
The USD INR all-time high was reached in May 2022, at 77.89 INR to USD. See the latest price chart for the exchange rate today.
How Is The Volatility Of USD/INR Calculated?
The historical volatility of USD/INR is calculated by looking at the change in value over time. The basic period for a prediction is often a one-day change, though you can use a 1-week or 1-month change. You can use a USD/INR graph to map this out. You will also need to determine how many periods you plan on investing in the forex pair when making the calculation.
What Happens If 1 USD = INR?
If 1 USD = INR, then India, in the short-term at least, would likely feel wealthy. Many forex traders that caught the trend of USD-INR exchange rate would probably make large profits. However, in the longer term, the economy may suffer as foreigners wouldn’t be able to afford to invest or travel to India. Imports would rise, and so too would unemployment.