USD/INR jumps back above 74.00 after S&P cuts India’s growth forecast

USD/INR bounces-off lows amid Indian growth downgrade.
The spot ignores broad-based US dollar correction.
Focus on US stimulus package amid coronavirus updates

Dhwani Mehta FXStreet

The Indian rupee fails to sustain the opening gains against the US dollar, as USD/INR jumps back above the 74 handle amid bearish India’s fundamentals, as coronavirus spreads.

The spot hit a low of 73.74 in the opening trades, tracking the weakness in the US dollar across the board. The greenback is on a corrective move lower across its main peers so far this Wednesday, having surged to monthly tops near 99.82 in US last session on increased funding stress.

However, USD/INR managed to find some support at the lower levels, as the Indian rupee lost ground after S&P Global Ratings downgraded India’s 2020 GDP growth estimate to 5.2% vs. 5.7% predicted earlier, as the global economy is entering a recession amid the coronavirus pandemic.

Shaun Roache, Chief Asia-Pacific Economist at S&P Global Ratings, said: “An enormous first-quarter shock in China, shutdowns across the US and Europe, and local virus transmission guarantees a deep recession across Asia-Pacific.”

Moreover, the rebound in oil prices from 49-month lows also adds to the renewed weakness seen in the rupee. Oil prices fell to fresh multi-year low amid intensifying global recession fears and ongoing Saudi-Russia price war.

All eyes remain on the coronavirus-related updates from India and globally for fresh trading impetus, as the US prepares to announce a big and bold economic stimulus to fight the virus outbreak.

USD/INR technical levels to watch

USD/INR

Overview
Today last price	74.05
Today Daily Change	0.0025
Today Daily Change %	0.00
Today daily open	74.0075

Trends
Daily SMA20	73.0397
Daily SMA50	71.9618
Daily SMA100	71.6487
Daily SMA200	71.0345

Levels
Previous Daily High	75.165
Previous Daily Low	73.705
Previous Weekly High	75.65
Previous Weekly Low	73.228
Previous Monthly High	72.84
Previous Monthly Low	71.077
Daily Fibonacci 38.2%	74.2627
Daily Fibonacci 61.8%	74.6073
Daily Pivot Point S1	73.42
Daily Pivot Point S2	72.8325
Daily Pivot Point S3	71.96
Daily Pivot Point R1	74.88
Daily Pivot Point R2	75.7525
Daily Pivot Point R3	76.34

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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