- USD/INR takes out 71.00 amid increased USD buying by Indian banks.
- The spot ignores the broad pullback in USD and firmer Yuan.
- Markets shrug-off Chinese data, as they await key US macro news.
USD/INR extends the recovery from five-week lows into a second day this Friday, having finally surpassed the 71 handle in the last hour.
The Indian rupee extends the corrective slide against its American rival, as the Indian state-run banks continue buying the US dollar amid increased demand for the buck from the importers.
According to a dealer at a state-run bank, “Foreign banks’ dollar sales had kept the rupee supported at 70.95 since early trade. But persistent dollar demand from state-run banks for importers has given a depreciation bias for the unit.”
“71.05 remains a key level for the rupee through the day, and any depreciation beyond these levels could take the rupee closer towards 71.15,” the dealer added.
Meanwhile, the strong gains in the Chinese yuan following the release of the upbeat Chinese Industrial and Retail Sales data also failed to lend support to its Asian peer, the INR.
Further, the pair also ignored the latest downtick in the US dollar across its main peers, as markets resort to profit-taking in the long USD positions ahead of the key US Industrial Production and UoM Consumer Sentiment data due for release later today.
The greenback rose against its main competitors on Thursday after the US reported stronger Retail Sales in December. The data could strengthen the view that the economy maintained a moderate growth pace at the end of 2019, dousing hopes for further Fed rate cuts this year.
USD/INR Technical levels to consider
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD climbs to 10-day highs above 1.0700
EUR/USD gained traction and rose to its highest level in over a week above 1.0700 in the American session on Tuesday. The renewed US Dollar weakness following the disappointing PMI data helps the pair stretch higher.
GBP/USD extends recovery beyond 1.2400 on broad USD weakness
GBP/USD gathered bullish momentum and extended its daily rebound toward 1.2450 in the second half of the day. The US Dollar came under heavy selling pressure after weaker-than-forecast PMI data and fueled the pair's rally.
Gold struggles around $2,325 despite broad US Dollar’s weakness
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
Germany’s economic come back
Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.