USD/INR: Indian rupee appreciates on weak oil prices and DXY

USD/INR has slipped near 76.00 on falling oil prices.
The risk-on impulse has underpinned the Indian rupee against the greenback.
The Fed has raised the interest rates by 25 bps and is determined to increase further gradually.

Sagar Dua FXStreet

The USD/INR pair continues to plunge further backed by plunging oil prices and weak performance from the US dollar index (DXY) amid risk-on impulse. The major has continued its two-day losing streak and has tumbled near 76.00.

Oil prices slip near $95.00

West Texas Intermediate (WTI), futures on NYMEX, has slipped near $95.00 after the US Energy Information Administration (EIA) reported an uptick in oil stockpiles on Wednesday. The EIA reported oil stockpiles at 4.345 million barrels outperformed the market consensus and previous figure of -1.375M and -1.863M. Positive oil stockpiles sent the oil prices lower overnight, which has appreciated the Indian rupee. India, being a major oil importer is negatively sensitive to oil prices.

Fed’s interest rate policy

The announcement of the interest rate decision by the Federal Reserve (Fed) on Wednesday has brought weakness in the DXY. Fed Chair Jerome Powell featured an interest rate hike by 25 basis points (bps), which weighed pressure on the elevated DXY and eventually underpinned the Indian rupee. The Fed has announced seven interest rate hikes for 2022 to contain the inflation mess.

Apart from the weak oil prices and subdued DXY, Foreign Institutional Investors (FIIs) have returned to the Indian markets after a steep sell-off. The Indian equities plunged heavily in February amid escalating tensions between Russia and Ukraine. Therefore, FII’s capital is returning to Indian markets and eventually is appreciating the Indian rupee.

USD/INR

Overview
Today last price	76.0345
Today Daily Change	0.0121
Today Daily Change %	0.02
Today daily open	76.0224

Trends
Daily SMA20	75.7909
Daily SMA50	75.1079
Daily SMA100	75.0048
Daily SMA200	74.6192

Levels
Previous Daily High	76.4296
Previous Daily Low	75.9692
Previous Weekly High	77.1725
Previous Weekly Low	76.0827
Previous Monthly High	75.9006
Previous Monthly Low	74.3785
Daily Fibonacci 38.2%	76.1451
Daily Fibonacci 61.8%	76.2537
Daily Pivot Point S1	75.8512
Daily Pivot Point S2	75.68
Daily Pivot Point S3	75.3909
Daily Pivot Point R1	76.3116
Daily Pivot Point R2	76.6007
Daily Pivot Point R3	76.7719

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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