USD/INR attempts recovery from three-month lows, 71.00 back on sight?
|- USD/INR defends 70.50 support amid trade/ Brexit optimism.
- Rupee drops for the first time in five trading sessions.
- Focus on USD dynamics and US-China trade deal announcement.
USD/INR is seeing some fresh signs of life in the European trading this Friday, having fallen to the weakest levels in three-months just ahead of the 70.50 level earlier today.
The spot turned green for the first time in five trading sessions after the Indian rupee came under fresh selling pressure on persistent greenback purchases by state-run banks trimmed early gains due to optimism over a US-China trade deal. According to a deal at an Indian state-run bank, “State-run banks have been actively buying dollars from around 70.55 levels, likely on behalf of the RBI.”
Earlier today, USD/INR extended the previous decline and tested the 70.50 support area, as the Indian currency continued to benefit from the strength seen in its Asian peers vs. the greenback after the US dollar was heavily dumped across the board. The US currency bore the brunt of the UK PM Johnson’s massive victory that shot the GBP/USD pair through the roof.
The recovery in the spot could gain further traction If the US-China trade deal is announced later on Friday that would boost the risk assets, including Treasury yields, in turn offering the much-needed reprieve to the USD bulls. Ahead of a deal announcement, the pair will also take cues from the Indian macro news and US Retail Sales report.
USD/INR Technical levels to consider
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