USD/INR Price News: Recaptures 79.00 ahead of hawkish Fed minutes, oil turns flat
|- USD/INR has reclaimed 79.00 as investors see FOMC minutes to bring more volatility in the FX domain.
- Apart from the FED minutes, investors will also focus on the US NFP.
- Oil prices have turned sideways after a firmer rebound as focus shifts to supply worries.
The USD/INR pair has rebounded from 78.90 after witnessing a corrective move. The asset was corrected after printing all-time highs at 79.22 on Friday. However, the major has reclaimed the psychological resistance of 79.00 on expectations of hawkish Federal Open Market Committee (FOMC) minutes for June monetary policy, which will release on Tuesday.
It is worth noting that the Federal Reserve (Fed) elevated its interest rates by 75 basis points (bps) in June. The Fed announced a bumper rate hike as price pressures are soaring in the US economy. The plain-vanilla inflation rate has reached 8.6%, which is hurting the households. The higher inflation rate has diminished the real value of the ‘paychecks’ of the general public.
Meanwhile, the US dollar index (DXY) is oscillating above 105.00 after a corrective move from Friday’s high at 105.63. This week, the release of the US employment data will also keep the FX domain on a volatile note. It is expected that the US economy has added 250k jobs in June, significantly lower than the former release of 390k. While the Unemployment Rate is seen as stable at 3.6%.
On the oil front, a firmer recovery in the oil prices has impacted the Indian rupee. The oil prices are holding themselves above $106.00. On Friday, the black gold displayed a strong rebound as bears exhausted. Meanwhile, investors have shifted their focus back to supply worries. Oil remain will remain tight as the Western leaders have prohibited Russian oil imports. And, out of the OPEC cartel, Saudi Arabia and UAE have the infrastructure to accelerate oil production. However, they are already operating at full capacity.
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