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. 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.

Feed news

Latest Forex News

Editors’ Picks

AUD/USD: Bears in control, 11-year low back in sight amid coronavirus-led risk-off

AUD/USD stalls its recovery attempts near 0.6625 region, as the bears remain in control amid broad risk-aversion induced by growing coronavirus contagion. The spot now heads back towards the 11-year low of 0.6583 reached earlier today. 

AUD/USD News

USD/JPY struggles to keep gains above 111.50 amid risk-off

USD/JPY is trimming gains as yen sellers are struggling to absorb buying pressure amid risk-off mood in the financial markets. Investors are selling risk, possibly in response to reports stating a rise in the number of coronavirus cases outside China, especially in South Korea and Italy. 

USD/JPY News

USD/KRW rises to six-month high as coronavirus spreads into South Korea

USD/KRW remains 0.67% up to 1,217.50 by the press time of early Monday. In doing so, the pair stays near the highest levels last seen during the late-August 2019 and the reason to blame is the outbreak of coronavirus (COVID-19) in South Korea.

Read more

Gold: Better bid after biggest weekly gain since August 2019

Gold is on the offensive, having logged its biggest weekly gain in six months last week. The yelloe metal rallied by over 3.7 percent last week to print its best weekly performance since August. The bias remains bullish despite overbought readings on key indicators.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex MAJORS

Cryptocurrencies

Signatures