USD/INR Price News: Indian rupee bounces off record low past 79.00 as oil slips on recession fears


  • USD/INR consolidates recent rally around all-time high, pressured near intraday low of late.
  • Oil prices slumped as global economic slowdown joins supply woes.
  • Market fears underpin USD’s safe-haven demand but anxiety ahead of key data/events trigger corrective pullback.
  • FOMC Minutes, US ISM Services PMI to decorate calendar, risk catalysts are the key.

USD/INR takes offers to pare recent gains as global markets consolidate the previous day’s risk-off mood ahead of the Federal Open Market Committee (FOMC) Minutes and the US ISM Services PMI for June. That said, downbeat prices of oil also favor the pair’s pullback towards 79.10 during Wednesday’s mid-Asian session.

WTI crude oil remains pressured around a three-month low, down 0.05% intraday near $97.70 by the press time, as energy traders keep fearing a slump in the demand amid recession woes. That said, the black gold marked the biggest daily loss since March, also refreshed a three-month low, while falling around 9.0% the previous day.

No optimism towards supply-chain improvement amid the escalation in the Russia-Ukraine tussles joins fears of fresh covid-led lockdowns in China to amplify recession risks. The pessimism intensified after Germany and Italy flashed economic warnings while the Bank of England (BOE) also released a report conveying the grim economic outlook.

Also read: Coronavirus Update: Shanghai lockdown fears linger as Xi goes under control measures

Additionally, hawkish bets on the major central banks’ next moves and upbeat US data also propel the risk-off mood, which in turn underpin the US dollar’s safe-haven demand. On Tuesday, the US Factory Orders for May, to 1.6% MoM versus 0.5% expected and upwardly revised 0.7% previous readings.

It should be noted that the recently downbeat oil prices also help the USD/INR traders to expect relief from the record trade deficit as India is a net importer of its energy demand. With this in mind, Nomura cites, “weakening India BoP dynamics, aggressive Fed hikes and rising US recession risks,” to aim for the 82.00 level for the USD/INR.

Also read: FOMC June Minutes Preview: Opportunity for dollar correction?

Technical analysis

USD/INR pullback remains elusive until the quote remains beyond the previous weekly range, between 79.10 and 78.85. That said, the 80.00 threshold lures the bulls.

Additional important levels

Overview
Today last price 79.1738
Today Daily Change -0.1948
Today Daily Change % -0.25%
Today daily open 79.3686
 
Trends
Daily SMA20 78.3477
Daily SMA50 77.7051
Daily SMA100 76.8336
Daily SMA200 75.8291
 
Levels
Previous Daily High 79.4086
Previous Daily Low 78.9374
Previous Weekly High 79.216
Previous Weekly Low 78.204
Previous Monthly High 79.091
Previous Monthly Low 77.3791
Daily Fibonacci 38.2% 79.2287
Daily Fibonacci 61.8% 79.1174
Daily Pivot Point S1 79.0678
Daily Pivot Point S2 78.767
Daily Pivot Point S3 78.5966
Daily Pivot Point R1 79.539
Daily Pivot Point R2 79.7094
Daily Pivot Point R3 80.0102

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

AUD/USD risks a deeper drop in the short term

AUD/USD risks a deeper drop in the short term

AUD/USD rapidly left behind Wednesday’s decent advance and resumed its downward trend on the back of the intense buying pressure in the greenback, while mixed results from the domestic labour market report failed to lend support to AUD.

AUD/USD News

EUR/USD leaves the door open to a decline to 1.0600

EUR/USD leaves the door open to a decline to 1.0600

A decent comeback in the Greenback lured sellers back into the market, motivating EUR/USD to give away the earlier advance to weekly tops around 1.0690 and shift its attention to a potential revisit of the 1.0600 neighbourhood instead.

EUR/USD News

Gold is closely monitoring geopolitics

Gold is closely monitoring geopolitics

Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.

Gold News

Bitcoin price shows strength as IMF attests to spread and intensity of BTC transactions ahead of halving

Bitcoin price shows strength as IMF attests to spread and intensity of BTC transactions ahead of halving

Bitcoin (BTC) price is borderline strong and weak with the brunt of the weakness being felt by altcoins. Regarding strength, it continues to close above the $60,000 threshold for seven weeks in a row.

Read more

Is the Biden administration trying to destroy the Dollar?

Is the Biden administration trying to destroy the Dollar?

Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.

Read more

Forex MAJORS

Cryptocurrencies

Signatures