USD/INR gaps higher on Indo-Pak tensions

  • Rupee opens lower in early trade, possibly due to reports of Indian airstrike on targets in Pakistan. 
  • USD/INR could remain bid on escalating Indo-Pak tensions. The upside, however, could be capped if Fed's Powell sounds dovish during his testimony to Congress. 

Indian rupee took a hit in early trade on Tuesday, possibly due to escalating tensions with arch-rival Pakistan. 

USD/INR gapped higher 71.26 and hit a high of 71.32 before falling back to 71.23. The currency pair had closed yesterday at 70.97. 

Reports hit the wires earlier today stating that Indian airforce targeted areas in Pakistan. The tensions between the two nations escalated following the dastardly Pulwama terror attack on Indian forces on Feb. 14. 

While the rising tensions with Pakistan will likely keep INR on the defensive, dovish comments from Fed Chairman Powell could limit the downside. 

The US Fed Chairman Powell will at Capitol Hill today to testify before Congress. Powell is likely to reiterate caution on interest rates and may offer clues on how the Fed plans to end its quantitative tightening program. 

Technical Levels

    1. R3 71.4733
    2. R2 71.3367
    3. R1 71.0883
  1. PP 70.9517
    1. S1 70.7033
    2. S2 70.5667
    3. S3 70.3183


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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD stuck below 50-day MA despite US-China trade truce

EUR/USD failed to close above the 50-day moving average (MA) on Friday and is trading below the key average at press time despite the US-China trade truce. Major investment banks have warned that the latest US-China trade truce may be temporary. 


GBP/USD under pressure as Brexit optimism losing luster

GBP/USD is facing selling pressure in the Asian session and may remain on the defensive in Europe on fading optimism for the Brexit deal. Britain and the European Union on Sunday that a lot more work would be needed to secure an agreement on Britain's departure from the bloc. 


USD/JPY consolidating bull rally into 108 handle on US/Sino trade deal optimism

USD/JPY starts out the week flat to Friday's close after markets rallied at the end of the week. Bullish geopolitical undertones in the form of a US/Sino 'phase 1' trade deal help lift USD/JPY onto the 108 handle.


Gold sellers cheer US-China trade optimism against all odds

With the US and China near to end the two-year-old trade tussle, Gold bears give little importance to doubts over soft Brexit and tension surrounding Syria while flashing $1,484.70 as a quote during Monday’s Asian session.

Gold News

US China trade deal propels US markets and yields higher and leaves dollar mixed

The US and China reached a limited trade deal on Friday a first step on the path to what both sides said could be a more comprehensive pact later in the year. President Trump said the countries reached a “very substantial phase one deal”.

Read more