USD/INR Price News: Indian rupee bulls retreat from 82.00 as oil soars, DXY consolidates
- USD/INR has displayed a vertical rebound from around 82.00 as oil prices soar.
- Market mood has turned extremely quiet ahead of US economic data.
- Fed’s preferred inflation tool, US core PCE could drop to 4.5%.
The USD/INR pair has resurfaced firmly from the round-level support of 82.00 in the Asian session. An inventory adjustment phase displayed on Wednesday has resulted in a north-side break amid a steep rise in oil prices.
The US dollar index (DXY) is displaying topsy-turvy moves in a 109.55-109.76 range ahead of US Gross Domestic Product (GDP) data. Pre-event consolidation is buzzing in the market, therefore, the market mood is extremely quiet. Returns from the 10-year US government bonds have bounced back after dropping below the crucial support of 4%.
Indian markets are operating in a holiday-truncated week, therefore, the asset is more reliant on events belonging to the greenback for activity.
On Thursday, the US economic calendar is full of critical events. From growth rate and demand for durable goods to Federal Reserve (Fed)’s most preferred inflation tool, the USD/INR pair is likely to remain highly active after Asia.
Projections claim that the US GDP has witnessed a growth rate of 2.4% in the third quarter vs. a de-growth of 0.6%. Also, the US Durable Goods Orders are seen higher at 0.6% against a drop of 0.2%.
The core Personal Consumption Expenditure (PCE) data for the third quarter is seen lower at 4.5% vs. the prior release of 4.7%. This could trim the odds of a bigger rate hike by the Federal Reserve (Fed).
On the oil front, oil prices have soared sharply to near $88.00 as sanctions on Russia will weigh on the global oil supply. India is a leading importer of oil and always have sheer demand of US dollars to address oil purchase, which may hurt the Indian rupee more against the mighty greenback.
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.
