Indian Rupee Price News and Forecast: USD/INR - Greenback losing strength against Indian Rupee, challenges 71.00 handle

FXStreet Team FXStreet

USD/INR refreshes multi-day top as coronavirus fears portray risk-off in Asia

USD/INR retraces early-day gains to 71.42 during the pre-European session on Monday. That said, the pair rose to 71.63, fresh highs since January 08 during the Asian session as traders rushed to the US dollar while seeking safety from China’s coronavirus contagion.

Also fueling the pair are the market’s concerns that the Indian government’s upcoming budget must include measures to propel domestic demand. Bibek Debroy, the chairman of PM's Economic Advisory Council anticipates the country’s growth to be near 5.0% excluding the inflation rate.

Even so, IMF chief Kristalina Georgieva said, on Friday, that growth slowdown in India appears to be temporary and she expects the momentum to improve going ahead, as reported by Money Control. Read more...

Market Wrap - The novel coronavirus in China has lead to global risk aversion

The USDINR pair ended the session higher by 11 paise at 71.44 due to broad-based US dollar strength across the global market and buying from some state-owned banks for importers. However, foreign and domestic private banks sold the greenback at higher levels, likely for exporters, cushioned the fall in the rupee. The novel coronavirus in China, the world's second largest economy, has lead to global risk aversion. So far, it has claimed 81 people's lives and affected more than 2,860 people. While Equity indices witnessed heavy selling pressure amid global risk-off sentiment, declining by 1.10%. The benchmark bond yield ended up marginally lower by 2bps to 6.55%. The dollar index was trading around 1-month high around 97.90 levels. On the data front, Eurozone Ifo Business climate index numbers came disappointing as German business morale deteriorated unexpectedly in January as the outlook darkened suggesting that Europe's largest economy got off to a slow start in 2020 after narrowly avoiding a recession in the previous year. Read more...

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EUR/USD challenges 1.1700, six-week lows

EUR/USD remains under heavy downside pressire in quite a dfrreadful start to the new trading week, putting the 1.1700 support to the test amid the marked rebound in the US Dollar. The flight-so-safety environment continues to support the Greenback following the escalating conflict in the Middle East.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold shifts its attention to $5,600 on fligh-to-safety mood

Gold climbs to levels last seen in late January past the $5,400 mark per troy ounce on Monday. The yellow metal’s strong uptick remains fuelled by incresing geopolitical tensions in the Middle East and the consequent demand for safer assets.

Bitcoin on brink of breakdown amid US-Iran war

Bitcoin (BTC) remains under pressure near the key support level of $65,700. Trading at $66,400 at the time of writing on Monday, a breakdown below this critical level would suggest a deeper correction ahead.

The week ahead: Conflict in the Middle East jolts markets

Events in the Middle East are obviously dominating financial markets this morning. The Brent crude oil price is extending gains and is higher by more than 8%, stock futures are pointing lower and the gold price is higher by more than 2%.

Pi Network Price Forecast: Core team offloads supply, weighing on PI recovery

Pi Network hovers below $0.1700, broadly steady at press time on Monday, attempting a recovery after a 2% loss the previous day. Sunday’s decline aligned with nearly 49 million PI tokens offloaded by the Pi Foundation, implying a spike in supply pressure that capped the prevailing four-day recovery.