USDINR AND MAJOR CURRENCIES OUTLOOK FOR MONDAY.

The Indian Rupee demonstrated significant resilience and is expected to start the Monday session between the 85.20 - 85.30 levels, driven by optimistic expectations surrounding foreign equity inflows into the Indian market. This upward movement in the currency is a reflection of increasing investor confidence, which has been significantly influenced by the resilience of the Indian economy in the face of global economic challenges.

In recent weeks, the Indian benchmark indices have shown remarkable recovery, managing to erase all losses that were initially triggered by the imposition of reciprocal tariffs by former U.S. President Donald Trump earlier this month. This swift rebound is indicative of the underlying strength of the Indian stock market and its capacity to attract foreign investment, despite the turbulent global economic climate.

Fxmethods suggest that the robust nature of India’s large domestic economy positions it favorably compared to many other countries that are grappling with the adverse effects of heightened trade tariffs. While several economies are experiencing contractions due to these tariffs, India is perceived as being more insulated, owing to its diverse economic base and strong domestic consumption. This resilience is further supported by various structural reforms and government initiatives aimed at boosting economic growth and attracting foreign capital.

Moreover, the anticipation of continued foreign equity inflows is expected to provide additional support to the Indian Rupee, reinforcing its position in the foreign exchange markets. Investors are increasingly looking towards India as a viable investment destination, drawn by its potential for growth and the relatively stable economic environment. As a result, the Indian Rupee may continue to gain strength, benefiting from both domestic and international market dynamics that favor its appreciation.

The GBP/USD pair advances towards 1.3350 in the early Asian session on Monday. The rise of the major pair is supported by the generally weaker US Dollar (USD), as traders grow more confident that the economic policies of US President Donald Trump may result in a recession. 

The EUR/USD pair has broken through a multi-day trading range, reaching its highest point since February 2022, around the 1.1485 level, during the Asian session on Monday. This momentum is driven by the bearish sentiment surrounding the US Dollar, which supports the likelihood of a continuation of the recent well-established uptrend.

On Monday, the People’s Bank of China (PBOC) established the USD/CNY central rate for the upcoming trading session at 7.2055, compared to Friday's rate of 7.2069.

The AUD/USD pair is trading positively around 0.6380 during the Asian session on Monday, supported by a weaker US Dollar. Traders are closely monitoring developments in the United States and China trade discussions, as tensions between the two largest economies continue to rise.

The Gold Price (XAU/USD) climbs to a new record high around $3,375 in the early Asian session on Monday, following some profit-taking caused by the long weekend. Ongoing uncertainty regarding US President Donald Trump's tariff policies and continuous geopolitical tensions remain supportive of the precious metal. 

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