Indian Rupee hits major hurdle could reignite EM currency concerns
EM currency crisis could resurface again in the coming months, if investors unwind their bullish bets on these currencies and equities, after a very positive first quarter – especially for the INR.
Share this:
Last year’s emerging market (EM) currency crisis saw the likes of the Turkish Lire (TRY) and Indian Rupee (INR) repeatedly drop to new all-time lows. While concerns have eased sharply over the past few months, the long-term trends on these developing currencies remain bearish. So, EM currency crisis could resurface again in the coming months, if investors unwind their bullish bets on these currencies and equities, after a very positive first quarter – especially for the INR.
In fact, the Indian Rupee has hit resistance today, causing the USD/INR to bounce sharply off a key long-term support area, ahead of tomorrow’s rate decision by the US Federal Reserve. As per the weekly chart, below, the area between 68.30 and 69.22 was a major resistance zone in the past, which could now offer support. Interestingly, we have seen a potential reversal already here: a bullish engulfing daily candlestick pattern (see inset). So, watch the USD/INR and other EM currency pairs closely to see if things develop further in the coming days. For now, this is merely a warning, but one that cannot be ignored.
Source: TradingView and FOREX.com. Please note, this product is not available to US clients
Related tags:
Open an account in minutes
Experience award-winning platforms with fast and secure execution.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
USD/CAD Outlook: Loonie left behind as US CPI looms
USD/CAD's sharp rebound has coincided with widening US–Canada interest rate differentials. With US CPI approaching and bullish momentum building, another breakout may be on the cards.
Japanese Yen Outlook: EUR/JPY and GBP/JPY Outbid USD/JPY
The Japanese yen starts the week mixed, with EUR/JPY and GBP/JPY showing bullish potential while USD/JPY remains stuck in a rut.
USD Majors, Gold, Bitcoin, Equity Indices Weekly Technical Outlook 11 9 2026
Sr. Technical Strategist Michael Boutros highlights the levels that matter on the USD Majors, commodities, and equity indices charts this week.
The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.