- Rupee rises on foreign banks’ dollar sales, short-covering ahead of RBI.
- Renewed USD selling amid trade and growth worries also weigh.
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
|Today last price||71.6115|
|Today Daily Change||-0.0224|
|Today Daily Change %||-0.03|
|Today daily open||71.6339|
|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|
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