USD/INR Price News: Indian rupee fails to cheer RBI’s optimism near 78.00, Fed’s Powell eyed
|- USD/INR picks up bids to refresh intraday high, extend the previous day’s rebound.
- RBI highlights upbeat economic prospects for India despite risks to global growth.
- WTO’s passage of trade deals also gains less accolades from the market.
- US dollar rebounds ahead of Fed’s bi-annual Monetary Policy Report, Powell’s speech, ignores downbeat Treasury yields.
USD/INR extends the previous day’s rebound from the weekly low, grinding higher around 78.00 as Indian markets open for Friday’s trading.
The Indian rupee (INR) pair’s latest gains respect for the US dollar’s recovery while paying a little heed to the Reserve Bank of India’s (RBI) economic optimism. Also could have favored the INR was the news from the World Trade Organization (WTO).
“Gross domestic product (GDP) for 2021-22 surpassed its pre-pandemic (2019-20) level by 1.5% and activity is gaining strength in 2022-23 so far as gauged from high-frequency indicators,” RBI’s monthly bulletin said on Thursday. "Domestic economic activity has been gaining traction in spite of formidable headwinds from external developments," adds the Indian central bank.
On a different page, Reuters came out with the news from the WTO as it said, “Representatives of the 164 countries cheered after the package was passed before Director-General Ngozi Okonjo-Iweala addressed them early on Friday.”
Elsewhere, the US Treasury yields remain pressured for the third consecutive day but fail to compress the US dollar as it bounces off the weekly low.
That said, the US Dollar Index (DXY) recovers from the weekly low near 103.40 to 104.10 by the press time. That said, US 10-year Treasury yields dropped during the last two consecutive days and remains down 5.3 basis points (bps) to 3.253% by the press time, as the Fed’s 0.75 rate increase couldn’t impress bulls.
Moving on, the US Industrial Production for May, expected at 0.4% versus 1.1% prior, will precede the Fed’s Monetary Policy Report and Powell’s speech to entertain USD/INR traders. However, major attention will be given to yields.
Technical analysis
A bullish flag chart pattern on the four-hour play hints at the further upside momentum of the USD/INR pair. However, a clear break of the 78.20 hurdle becomes necessary to witness a fresh record top.
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