USD/INR Price News: Indian Rupee grinds near two-month low of 82.85 as Fed talks loom

USD/INR clings to mild gains around the highest levels in two months, retreats of late.
Broad US Dollar strength weighs on Indian Rupee despite latest pullback in greenback.
Upbeat Oil price, cautious mood also prods USD/INR bulls at multi-day peak.
Fed Chair Powell’s speech, US President Biden’s announcements on debt ceiling extension eyed for clear directions.

Anil Panchal FXStreet

USD/INR seesaws around 82.75-80 as it prints minor gains amid early Friday in Europe, after refreshing an eight-week high to 82.85 the previous day. In doing so, the Indian Rupee (INR) pair justifies the market’s cautious mood ahead of top-tier events amid mixed clues at home.

While portraying the mood, S&P500 Futures struggle to refresh the yearly top as it prints mild gains near 4,220 after rising to the highest levels since August 2022 the previous day. On the same line, stocks in the Asia-Pacific region trade mixed whereas the US 10-year and two-year Treasury bond yields hesitate in extending the five-day uptrend at the monthly tops.

Among the key risk-negative catalysts are the fears of the US-China tension and the recent concerns that the US debt ceiling extension may witness heavy barriers. That said, headlines suggesting the US House Freedom Caucus’s capacity to block any agreement to raise the $31.4 trillion debt ceiling prod the US Dollar Index (DXY) bulls around a two-month high.

Also challenging the USD/INR buyers is the US-Taiwan trade deal ahead of planned meetings between China's Commerce Minister Wang Wentao and USTR Tai and US Commerce Secretary Gina Raimondo.

It’s worth noting that the recently firmer prices of the WTI crude oil, up 0.65% intraday near $72.50 by the press time, join the fears of Reserve Bank of India’s (RBI) inaction, versus the hawkish hopes from the Federal Reserve (Fed) to keep the USD/INR buyers hopeful.

The concerns surrounding the RBI’s inaction gained momentum after India reported downbeat inflation data. On the other hand, a slump in the market’s bets on the US Federal Reserve (Fed) rate cut in 2023, as well as an increase in the odds of a 0.25% rate hike in June, joined firmer US data and hawkish Fed talks to propel the DXY.

Moving ahead, Federal Reserve (Fed) Chairman Jerome Powell’s speech and US President Joe Biden’s press conference, likely on late Sunday, about debt ceiling extension will be key to watch for clear directions.

Technical analysis

A seven-month-old descending resistance line, currently around 82.85, appears a tough nut to crack for the USD/INR bulls, especially amid the nearly overbought RSI (14) line.

USD/INR

Overview
Today last price	82.7545
Today Daily Change	0.0309
Today Daily Change %	0.04
Today daily open	82.7236

Trends
Daily SMA20	81.9952
Daily SMA50	82.1146
Daily SMA100	82.1387
Daily SMA200	81.7607

Levels
Previous Daily High	82.859
Previous Daily Low	82.3495
Previous Weekly High	82.2658
Previous Weekly Low	81.669
Previous Monthly High	82.5092
Previous Monthly Low	81.485
Daily Fibonacci 38.2%	82.6644
Daily Fibonacci 61.8%	82.5441
Daily Pivot Point S1	82.4291
Daily Pivot Point S2	82.1345
Daily Pivot Point S3	81.9196
Daily Pivot Point R1	82.9386
Daily Pivot Point R2	83.1535
Daily Pivot Point R3	83.4481

Author

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.

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