Indian Rupee Price News and Forecast: USD/INR - Greenback losing strength against Indian Rupee, challenges 71.00 handle
|USD/INR refreshes multi-day top as coronavirus fears portray risk-off in Asia
USD/INR retraces early-day gains to 71.42 during the pre-European session on Monday. That said, the pair rose to 71.63, fresh highs since January 08 during the Asian session as traders rushed to the US dollar while seeking safety from China’s coronavirus contagion.
Also fueling the pair are the market’s concerns that the Indian government’s upcoming budget must include measures to propel domestic demand. Bibek Debroy, the chairman of PM's Economic Advisory Council anticipates the country’s growth to be near 5.0% excluding the inflation rate.
Even so, IMF chief Kristalina Georgieva said, on Friday, that growth slowdown in India appears to be temporary and she expects the momentum to improve going ahead, as reported by Money Control. Read more...
Market Wrap - The novel coronavirus in China has lead to global risk aversion
The USDINR pair ended the session higher by 11 paise at 71.44 due to broad-based US dollar strength across the global market and buying from some state-owned banks for importers. However, foreign and domestic private banks sold the greenback at higher levels, likely for exporters, cushioned the fall in the rupee. The novel coronavirus in China, the world's second largest economy, has lead to global risk aversion. So far, it has claimed 81 people's lives and affected more than 2,860 people. While Equity indices witnessed heavy selling pressure amid global risk-off sentiment, declining by 1.10%. The benchmark bond yield ended up marginally lower by 2bps to 6.55%. The dollar index was trading around 1-month high around 97.90 levels. On the data front, Eurozone Ifo Business climate index numbers came disappointing as German business morale deteriorated unexpectedly in January as the outlook darkened suggesting that Europe's largest economy got off to a slow start in 2020 after narrowly avoiding a recession in the previous year. Read more...
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