- 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
|Today last price||71.0425|
|Today Daily Change||0.0551|
|Today Daily Change %||0.08|
|Today daily open||70.9824|
|Previous Daily High||71.1675|
|Previous Daily Low||70.6925|
|Previous Weekly High||72.57|
|Previous Weekly Low||70.8485|
|Previous Monthly High||71.98|
|Previous Monthly Low||70.328|
|Daily Fibonacci 38.2%||70.9861|
|Daily Fibonacci 61.8%||70.8739|
|Daily Pivot Point S1||70.7274|
|Daily Pivot Point S2||70.4725|
|Daily Pivot Point S3||70.2524|
|Daily Pivot Point R1||71.2024|
|Daily Pivot Point R2||71.4225|
|Daily Pivot Point R3||71.6774|
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.