USD/INR Price News: Declines below the 81.60 cushion as risk-on profile cripples US Dollar
|- USD/INR is expected to display sheer losses as it has surrendered the critical support of 81.60.
- The 10-year US Treasury yields have dropped to near 3.66% as investors see no 75 bps rate hike move ahead.
- Weaker oil prices and firmer Indian indices have strengthened the Indian rupee bulls.
The USD/INR pair has slipped below the critical support of 81.60 in the Asian session. The asset has surrendered the aforementioned support ahead as overall optimism in the currency market is leading to a sell-off for the US Dollar at rallies.
The US dollar has delivered a downside break of the consolidation formed in a narrow range of 105.84-1.5.94 in the early Tokyo session. The mighty US Dollar is expected to retest Thursday’s low at 105.64. Meanwhile, the 10-year US Treasury yields have started their downside journey and have dropped to near 3.66% as investors see no continuation of the 75 basis points (bps) rate hike regime after the release of the Federal Open market Committee (FOMC) minutes.
On the Indian rupee front, the return of Foreign Institutional Investors (FIIs) to Dalal Street as Nifty50 has reached near its all-time highs has strengthened the Indian rupee. As FIIs are pouring funds into the Indian equity markets due to an improvement in risk appetite theme, foreign reserves in India are escalating.
Apart from that, a sheer decline in oil prices due to rising infections of Coronavirus in China has also infused fresh blood into the Indian rupee bulls. It is worth noting that India is one of the leading importers of oil and lower oil prices would result in a lower outlay of funds from the Indian financial system.
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