|

USD/INR Price News: Indian rupee drops below 200-DMA on strong yields, oil prices

  • USD/INR takes the bids to refresh weekly top, up for the fourth consecutive day.
  • India daily covid infections rise, WTI crude oil pokes 2021 top.
  • US Treasury yields refresh multi-day peak, India bond coupons follow the suit.

USD/INR leaps to 74.41, up 0.20% intraday during the fourth consecutive day of an upside momentum amid early Tuesday.

The Indian rupee (INR) pair tracks the US Treasury yields and firmer oil prices to extend the north-run towards the monthly peak.

That said, the US 10-year and 5-year Treasury yields refresh two-year highs while the 2-year bond coupon jumps to the February 2020 levels at the latest. Also portraying the risk-off mood is the S&P 500 Futures drop 0.45% by the press time.

“The yield on the benchmark 6.10% bond maturing in 2031 is likely to trade in the 6.62%-6.66% band today, a trader with a private bank said. The note ended at 96.27 rupees, yielding 6.64%, the highest since Jan. 20, 2020, yesterday. The Indian rupee was at 74.24 per dollar yesterday,” said Reuters.

It’s worth noting that the WTI crude oil prices rise around 1.0% around $85.00 while poking the year 2021 peak, posted in October.

Elsewhere, escalating virus woes in Asia-Pacific also weigh on the INR. While Australia reports the biggest daily death toll due to the covid, China braces for tighter activity controls in Tianjin. Further, Japan’s Tokyo also braces for quasi-emergency together with the other nine prefectures. At home, India reports 682 fresh cases of Omicron versus 466 posted yesterday.

That said, the risk-off mood propels USD/INR prices and the same is likely to keep the pair buyers hopeful ahead of the next week’s Federal Open Market Committee (FOMC) meeting. For today, US NY Empire State Manufacturing Index for January and NAHB Housing Market Index will decorate the calendar.

Technical analysis

A clear upside break of the 200-DMA level of 74.27 directs USD/INR bulls towards the 100-DMA level of 74.56 and then to the monthly peak of 74.68. Alternatively, pullback moves remain elusive until staying beyond 74.27.

Additional important levels

Overview
Today last price74.3985
Today Daily Change0.1323
Today Daily Change %0.18%
Today daily open74.2662
 
Trends
Daily SMA2074.5192
Daily SMA5074.8295
Daily SMA10074.547
Daily SMA20074.281
 
Levels
Previous Daily High74.3543
Previous Daily Low74.1337
Previous Weekly High74.4219
Previous Weekly Low73.7283
Previous Monthly High76.5958
Previous Monthly Low74.1065
Daily Fibonacci 38.2%74.27
Daily Fibonacci 61.8%74.218
Daily Pivot Point S174.1485
Daily Pivot Point S274.0308
Daily Pivot Point S373.9279
Daily Pivot Point R174.3691
Daily Pivot Point R274.472
Daily Pivot Point R374.5897

Author

Anil Panchal

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

More from Anil Panchal
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD moves sideways below 1.1800 on Christmas Eve

EUR/USD struggles to find direction and trades in a narrow channel below 1.1800 after posting gains for two consecutive days. Bond and stock markets in the US will open at the usual time and close early on Christmas Eve, allowing the trading action to remain subdued. 

GBP/USD keeps range around 1.3500 amid quiet markets

GBP/USD keeps its range trade intact at around 1.3500 on Wednesday. The Pound Sterling holds the upper hand over the US Dollar amid pre-Christmas light trading as traders move to the sidelines heading into the holiday season. 

Gold retreats from record highs, trades below $4,500

Gold retreats after setting a new record-high above $4,520 earlier in the day and trades in a tight range below $4,500 as trading volumes thin out ahead of the Christmas break. The US Dollar selling bias remains unabated on the back of dovish Fed expectations, which continues to act as a tailwind for the bullion amid persistent geopolitical risks.

Bitcoin slips below $87,000 as ETF outflows intensify, whale participation declines

Bitcoin price continues to trade around $86,770 on Wednesday, after failing to break above the $90,000 resistance. US-listed spot ETFs record an outflow of $188.64 million on Tuesday, marking the fourth consecutive day of withdrawals.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Avalanche struggles near $12 as Grayscale files updated form for ETF

Avalanche trades close to $12 by press time on Wednesday, extending the nearly 2% drop from the previous day. Grayscale filed an updated form to convert its Avalanche-focused Trust into an ETF with the US Securities and Exchange Commission.