Indian Rupee: State-bank selling caps gains – Societe Generale
By FXStreet Insights Team
Updated: 2 Jul 2026
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Societe Generale highlights that state-controlled banks in India have been actively selling Dollars for a second day after USD/INR briefly moved above its 50-day moving average.
Societe Generale highlights that state-controlled banks in India have been actively selling Dollars for a second day after USD/INR briefly moved above its 50-day moving average. The report notes that supportive factors such as FPI debt inflows and lower Oil and Gold prices are being offset by hawkish Federal Reserve repricing. RBI’s net short USD position expanded sharply in May before recent policy steps.
Indian banks lean against Dollar strength
"In Asia, state-controlled banks of India actively sold dollars for second straight day this morning following a brief return of USD/INR above the 50dma (95.03) yesterday."
"Tailwinds of FPIs debt portfolio inflows, lower oil and gold prices have been negated by hawkish repricing of the Fed."
"Yesterday’s minor pullback in front-end US yields on Warsh’s inflation comments were brushed aside."
"Data shows the net short USD book of the RBI expanded by $11.4bn to record $106.7bn in May before policy measures announced by the RBI/MoF in early June."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
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