USD/INR finds buyers ahead of 71.00, focus on US NFP
USD/INR extended its three-day bearish momentum and went on to hit three-week lows at 71.06 before recovering some ground to now trade near 71.20 region, almost unchanged on the day.
The spot came under heavy selling pressure in the opening hours after the foreign banks sold the US dollar heavily while broad-based US dollar consolidation also did little to stem the fall in the prices.
According to a dealer at a private bank, “Dollar flows related to QIP placement of a leading telecom operator, which were there yesterday, could continue today. This is keeping the pair well offered.” Read more...
USD/INR drops to fresh multi-week lows below 71 ahead of NFP
After moving sideways in a relatively tight range above the 71 handle during the first half of the day, the USD/INR pair came under renewed pressure in the last hours and touched its lowest level since mid-December at 70.853. As of writing, the pair was down 0.35% on a daily basis at 70.958.
Improved market sentiment amid easing geopolitical tensions in the Middle East help emerging market (EM) currencies such as the INR find demand in the second half of the week.
However, a recently conducted Reuters poll showed that market experts don't expect the rupee to outperform the USD in 2020. According to a January 3-9 survey of over 50 strategists, the rupee is expected to lose more than 1% against the greenback in a 12-month view with the USD/INR pair rising to 72 in that period. Read more...
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