- USD/INR is expected to display sheer losses as it has surrendered the critical support of 81.60.
- The 10-year US Treasury yields have dropped to near 3.66% as investors see no 75 bps rate hike move ahead.
- Weaker oil prices and firmer Indian indices have strengthened the Indian rupee bulls.
The USD/INR pair has slipped below the critical support of 81.60 in the Asian session. The asset has surrendered the aforementioned support ahead as overall optimism in the currency market is leading to a sell-off for the US Dollar at rallies.
The US dollar has delivered a downside break of the consolidation formed in a narrow range of 105.84-1.5.94 in the early Tokyo session. The mighty US Dollar is expected to retest Thursday’s low at 105.64. Meanwhile, the 10-year US Treasury yields have started their downside journey and have dropped to near 3.66% as investors see no continuation of the 75 basis points (bps) rate hike regime after the release of the Federal Open market Committee (FOMC) minutes.
On the Indian rupee front, the return of Foreign Institutional Investors (FIIs) to Dalal Street as Nifty50 has reached near its all-time highs has strengthened the Indian rupee. As FIIs are pouring funds into the Indian equity markets due to an improvement in risk appetite theme, foreign reserves in India are escalating.
Apart from that, a sheer decline in oil prices due to rising infections of Coronavirus in China has also infused fresh blood into the Indian rupee bulls. It is worth noting that India is one of the leading importers of oil and lower oil prices would result in a lower outlay of funds from the Indian financial system.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.