USD/INR Price News: Set for a faster ride to recapture all-time-highs at 78.50
|- USD/INR is aiming to recapture its all-time highs at 78.50.
- Fed Powell’s hawkish commentary has underpinned the greenback bulls against the Indian rupee.
- Oil prices are expected to remain on the tenterhooks amid escalating recession fears.
The USD/INR pair has rebounded strongly at the open after a corrective move towards 78.13. The hawkish commentary from Federal Reserve (Fed) Jerome Powell in his testimony has infused an adrenaline rush into the greenback bulls.
Fed Powell in his testimony has cleared that the US central bank is ‘unintentionally committed’ to achieving price stability. The ongoing inflation rate is 8.6% more than four times the desired inflation rate. In order to combat the inflation monster, the Fed needs to feature one more 75 basis points (bps) in its July monetary policy.
The Fed has already elevated its interest rates to 1.50-1.75% and still no notable impact has been witnessed on the price rise. Therefore, investors should not brace for a pause after a bumper rate hike in July. More rate hike announcements could come in the following interest rate decisions.
Meanwhile, the US dollar index (DXY) is displaying a lackluster performance in the Asian session due to the unavailability of any potential trigger on Friday. At the press time, the asset is oscillating in a 104.26-104.33 range. Going forward, investors’ focus will remain on the US Durable Goods Orders. An improvement is seen in the economic data to 0.6% from the prior print of 0.5%. A higher-than-expected print by the economic data will signify a resilient demand in the US economy.
On the oil front, oil prices have turned sideways after remaining in a negative trajectory for the past two weeks. Escalating recession fears are expected to keep the oil prices on the tenterhooks going forward.
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