USD/INR Price News: Indian rupee off three-week lows at 72.86, not out of the woods yet
|The steady pace of India’s economic recovery appears to be affected by a sharp surge in coronavirus cases in February, all eight high-frequency indicators tracked by Bloomberg News showed on Tuesday.
Key takeaways
“The February reading reflects gains in the economy at a time when virus cases were on the wane. “
“However, the recent weeks have seen the trend reverse, raising the specter of localized lockdowns that could hit consumer mobility and demand in an economy where consumption makes up some 60% of gross domestic product.”
“Economists see a bumpy road ahead given that the western Indian state of Maharashtra, which contributes 14.5% to the country’s overall GDP, is among the worst hit and accounts for the majority of cases. The state, which includes Mumbai, has imposed a night curfew to tamp down cases that have been rising since mid-February.”
USD/INR eyes more gains
USD/INR has retraced from three-week highs of 72.86 but the upside bias remains in place, as the US dollar could likely continue benefiting from rising Treasury yields.
The US rates on the market remain elevated, thanks to the vaccine progress and expectations of massive infrastructure spending plans under President Joe Biden’s presidency.
At the time of writing, USD/INR trades at 72.78, up 0.05% on the day.
USD/INR additional levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.