USD/INR hits fresh three-month lows near 70.50, tariffs eyed
- USD/INR trades at the lowest levels since September 30th.
- Weaker USD on dovish FOMC weighs on the spot.
- Focus on USD dynamics ahead of the US tariffs decision.
USD/INR extended its four-day losing streak and hit fresh three-month lows of 70.54 over the last hour, mainly in response to broad-based US dollar weakness and foreign fund inflows.
The Indian rupee kept its recent upbeat momentum intact vs. its American peer, as higher domestic equities and persistent foreign fund inflows strengthened investors’ sentiment in the local currency.
Meanwhile, the US dollar remains heavy across its main peers after the US Federal Reserve (Fed) left the rates on-hold on Wednesday while signaled an intention to keep interest rates unchanged in 2020 unless there is a material change to the economic outlook.
It's more of the dollar weakness that is hurting the USD/INR pair while increased nervousness ahead of the key meeting between US President Trump and his trade adviser to discuss the Dec. 15 tariffs also weighs negatively on the price.
Ahead of the tariff’s decision, the pair will continue to get influenced by the USD price-action. Also, the Indian Industrial and Manufacturing Production data, due at 1200 GMT, will also offer some fresh impetus.
USD/INR Technical levels to consider
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
