USD/INR Price News: Indian rupee teases bulls above 74.00 amid subdued markets
|- USD/INR snaps two-day uptrend, steps back from intraday top.
- Doubts over India’s vaccination success join fears of Delta Plus covid variant to back buyers.
- Indecision over Fed’s next moves, US President Biden’s infrastructure spending passage tests immediate moves.
- US data, Fedspeak and macro relating to covid, stimulus become important for fresh impulse.
USD/INR pares weekly gains with a recent pullback to 74.20, down 0.05% intraday, amid the initial hour of Thursday’s Indian trading session. In doing so, the Indian rupee (INR) pair drops for the first in three days amid the market’s indecision over the coronavirus (COVID-19) conditions in India and the US Federal Reserve’s (Fed) next moves, not to forget US President Joe Biden’s infrastructure spending plan.
INR bulls cheer the latest declines in the COVID-19 cases, easing of virus-led activity restrictions in states and record surge in daily vaccinations. The latest data from the Indian Health Minister, per Reuters, mention a 54,069 daily rise in coronavirus infections, taking a total to 30.08 million, whereas the pandemic-led fatalities increased 1,321 to 391,981.
Even so, the New York Times (NYT) gives India 93rd rank for its inoculation, versus 82nd during early June, while marking a meager 3.8% fully vaccinated Indians.
On the contrary, the US dollar gains safe-haven bids as Fed policymakers and Treasury Secretary Janet Yellen could not convince markets of any challenges to the easy money policies. Also, doubts over how the US Senators will be able to bridge a large gap between the Republicans’ demands and Democrats’ push ahead of a two-week holiday session add to the market jitters. Furthermore, the covid variant fears regain traction in the US after an Epidemiologist warns over the jump in the cases this fall and add to the greenback’s strength.
Against this backdrop, Indian shares track mildly bid US stock futures while the US dollar index benefited from a firmer US 10-Treasury yield by the press time.
Moving on, USD/INR traders may keep struggling for clues ahead of the key US Durable Goods Orders. Also important will be the comments from the Federal Reserve (Fed) officials, as well as virus and stimulus updates.
Read: US Durable Goods Orders May Preview: Is the consumer really absent?
Technical analysis
USD/INR rebound from the 74.00 needs acceptance from mid-April lows near 74.55 to keep the pair buyers hopeful. Otherwise, a 50-day SMA level of 73.64 will be the key to watch during the fresh downside below the weekly low.
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