USD/INR attacks 71.00 as Rupee rises on corporate flows
|- USD/INR slips on USD retreat, upbeat India’s growth outlook, corporate flows.
- India’s Chief Economic Adviser said India's growth potential still high.
- Focus on key Indian/ US macro news, FOMC and trade updates this week.
The minor recovery attempts in USD/INR are seen facing supply near 71.20 region, sending back the rates to test the 71.00 level, where it now wavers.
The latest decline takes the price to the lowest levels in more than a month, mainly driven by the ongoing strength in the Indian rupee. The rupee remains buoyed by the latest upbeat comments from the Indian Chief Economic Adviser and likely corporate dollar inflows. The Indian Chief Economic Adviser said that India’s growth potential still remains high and that the government will step up efforts to revive growth.
Meanwhile, a dealer with a state-run bank said: “The rupee has had an appreciation bias in today’s session, owing to high corporate inflows, but large gains are capped as state-run banks have stepped up dollar buys, suspected on behalf of the RBI, as the current levels look attractive to enter.”
Further, broad-based US dollar correction from solid US jobs report led upsurge also adds to the downbeat tone seen around the cross. The US economy added 266,000 new jobs in November, the US Labor Department showed last Friday, the biggest gain since January.
The focus now shifts towards the Indian inflation and factory data and the FOMC monetary policy decision ahead of the looming US Dec. 15 tariffs on the Chinese goods.
USD/INR Technical levels to consider
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.