USD/INR hits three-day lows near 71.50, focus shifts to RBI

Rupee rises on foreign banks’ dollar sales, short-covering ahead of RBI.
Renewed USD selling amid trade and growth worries also weigh.

Dhwani Mehta FXStreet

The Indian rupee extends gains for the second straight day on Tuesday, as USD/INR retreats further from five-day highs of 71.87 reached last Friday. At the time of writing, the spot has managed to bounce off the 71.50 support and trades near 71.65 region, +0.10% on the day.

The recent strength behind the rupee is mainly induced by increased foreign banks’ dollar sales. According to a dealer with an Indian private bank, “Rupee is trading with a positive bias due to flows and weakness in the dollar index. We expect the range-bound move to continue for the rest of the session due to lack of any fresh cues for the day.”

Further, broad-based US dollar weakness, in the wake of negative US factory data and US President Trump’s concerns over a stronger dollar, collaborates to the downside bias in the pair. Also, a short-covering rally in the rupee cannot be ruled, as markets resort to profit-taking, with the two-day Reserve Bank of India (RBI) monetary policy review meeting having commenced.

Markets now await the RBI monetary policy decision for fresh direction on the rupee. In the meantime, the US-China trade-related headlines and USD dynamics will continue to influence the currency.

USD/INR Technical levels to consider

USD/INR

Overview
Today last price	71.6115
Today Daily Change	-0.0224
Today Daily Change %	-0.03
Today daily open	71.6339

Trends
Daily SMA20	71.5895
Daily SMA50	71.2262
Daily SMA100	70.994
Daily SMA200	70.2363

Levels
Previous Daily High	71.945
Previous Daily Low	71.5885
Previous Weekly High	71.8815
Previous Weekly Low	71.2255
Previous Monthly High	72.37
Previous Monthly Low	70.4975
Daily Fibonacci 38.2%	71.7247
Daily Fibonacci 61.8%	71.8088
Daily Pivot Point S1	71.4999
Daily Pivot Point S2	71.366
Daily Pivot Point S3	71.1434
Daily Pivot Point R1	71.8564
Daily Pivot Point R2	72.079
Daily Pivot Point R3	72.2129

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.

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