USD/INR consolidates near multi-day tops above 71.00
|- USD/INR gathers pace for further upside, looks to 71.30.
- Retreat in oil prices and trimmed USD sales rescue the rupee bulls.
- All eyes on US Durable Good data after Friday’s upbeat US GDP revision.
USD/INR has entered a phase of consolidation near nine-day highs of 71.257 reached last Friday, as the bulls take a breather ahead of the key US macro data release. At the time of writing, the spot trades +0.20% at 71.185, having hit daily highs of 71.243 last hour.
The rupee is offered some temporary reprieve from reduced dollar sales by the foreign banks and retreat in oil prices from multi-month highs. Further, the latest US-China trade optimism following US President Trump’s comments lifts the sentiment around the Asian currencies, in turn helping limit the INR declines.
Despite the stalled USD/INR upside, the spot remains underpinned by the recent surge in the US dollar to two-week highs vs. its main rivals, in light of solid US Q3 GDP revision that eased speculations of more Fed easing next year.
In the day ahead, the pair will get influenced by the Reserve Bank of India’s (RBI) special bond market operation and trade headlines ahead of the US Durable Good Orders data lined up for release at 1330 GMT.
USD/INR Technical levels to consider
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