USD/INR Price News: Indian rupee bounces off 78.00 on firmer sentiment, Fed’s Powell eyed
|- USD/INR steps back from all-time high amid broad risk-on mood.
- Softer oil prices, upbeat covid headlines from India, China strengthen pullback moves.
- Fed’s Powell needs to repeat 50 bps rate hike concerns to keep USD pressured.
Having initially refresh the all-time high, with an uptick to 78.02, USD/INR takes offers to renew the intraday low around 77.70 during the initial hour of the Indian trading session on Tuesday.
The Indian rupee (INR) pair’s latest rebound could be linked to the broad optimism in the Asia-Pacific region, as well as the broad US dollar pullback. More specifically, covid updates from China and India underpin the USD/INR pair’s latest pullback moves.
That said, the latest covid updates from India hint at the lowest daily active cases since March 25. On the other hand, China’s Shanghai conveyed plans to end the covid-linked lockdown after the third consecutive day of zero coronavirus cases outside the quarantine area.
It’s worth noting that the WTI crude oil prices down 0.20% intraday around $111.00, also help USD/INR to lick its wounds, due to India’s position as a high oil importer, as well as due to the nation’s record deficit. The black gold remains easy amid global growth fears and the hopes of no demand constrain even if European pushes forward its oil embargo on Russia.
Altermatively, concerns surroudning the Reserve Bank of India's (RBI) further easing keep USD/INR buyers hopeful. "A government source told Reuters the RBI will use various instruments to help lower bond yields, which have hit their highest since 2019," said the news on Tuedsday.
Looking forward, the US Retail Sales for April, expected at 0.7% versus 0.5% prior, for initial directions. However, major attention will be given to Fed Chair Powell’s speech at the Wall Street Journal’s (WSJ) event.
Technical analysis
USD/INR pullback remains elusive until the quote drops back below the previous resistance line from December 2021, around 77.65 by the press time.
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