USD/INR Price News: Indian rupee refreshes two-month high above 72.50 amid USD sell-off


  • USD/INR stands on slippery ground near multi-day low, drops for fifth consecutive day.
  • Risk-on mood weighs on the US dollar, downbeat options market also weigh on the quote.
  • SBI report anticipates slower fall in Indian GDP, covid infections in India ease of late.
  • Market sentiment favor bears, risk catalysts are the key to follow.

USD/INR takes offers around 72.65, down 0.21% intraday, amid the initial Indian trading session on Wednesday. The Indian rupee (INR) pair cheers the broad US dollar weakness, amid risk-on mood, to test the lowest levels since March 29.

Following multiple attempts from the US Federal Reserve (Fed) policymakers, market players seemed to have convinced of reflation fears as transitory and not resulting in any tapering. The same joins the US removal of China’s Xiaomi from the blacklist and readiness to ease restrictions on the Russian oil pipeline to portray the upbeat market sentiment.

Amid these plays, S&P 500 Futures print mild gains despite the Wall Street benchmark’s downplay whereas the US 10-year Treasury yields snap a four-day losing streak. However, the US dollar index (DXY) remains heavy near the early January lows by the press time.

Other than the market optimism and the USD weakness, hopes of a lesser economic loss due to the pandemic to the Indian economy, per the State Bank of India (SBI) report, shared by Accord Fintech, per Reuters, also drag the USD/INR prices to the south. “According to the report, going by the estimate of 1.3 percent GDP growth, India would still be the fifth-fastest-growing country among 25 nations that have released their GDP numbers so far. It said one likely consequence of any upward revision in FY21 estimates is a concomitant decline in FY22 GDP estimates. Its estimates now indicate that there might be nominal GDP loss of up to Rs 6 lakh crore during Q1 FY22 as compared to a loss of Rs 11 lakh crore in Q1 FY21,” said the report.

It’s worth mentioning that the latest easing of the coronavirus (COVID-19) infections in India as well as a three-day fall in the USD/INR risk reversal, suggesting a more bearish move, add to the sellers’ strength.

Looking forward, Fedspeak and the risk catalysts remain as the key near-term directives to follow for fresh impulse. However, the USD/INR prices seem to have been oversold for the short term and are near to the key support, which in turn may offer a magnified reaction in case of the US dollar rebound.

Technical analysis

Unless bouncing back beyond the 73.30 immediate hurdle, USD/INR is vulnerable to drop towards an ascending trend line from December 2019, near 72.50.

Additional important levels

Overview
Today last price 72.6491
Today Daily Change -0.1536
Today Daily Change % -0.21%
Today daily open 72.8027
 
Trends
Daily SMA20 73.4683
Daily SMA50 73.7089
Daily SMA100 73.3251
Daily SMA200 73.5386
 
Levels
Previous Daily High 73.0975
Previous Daily Low 72.7494
Previous Weekly High 73.7148
Previous Weekly Low 72.7787
Previous Monthly High 75.6321
Previous Monthly Low 73.1696
Daily Fibonacci 38.2% 72.8824
Daily Fibonacci 61.8% 72.9645
Daily Pivot Point S1 72.6689
Daily Pivot Point S2 72.5351
Daily Pivot Point S3 72.3208
Daily Pivot Point R1 73.017
Daily Pivot Point R2 73.2313
Daily Pivot Point R3 73.3651

 

 

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

EUR/USD stays defensive near 1.0700 amid USD strength, EU political jitters

EUR/USD stays defensive near 1.0700 amid USD strength, EU political jitters

EUR/USD is trading close to 1.0700, struggling to build on the previous bounce early Monday. European political uncertainty continues to undermine the Euro and cap the pair's upside. The US Dollar tracks the Treasury bond yields higher amid a cautious mood, weighing on the pair. 

EUR/USD News

GBP/USD remains pressured toward 1.2650 on firmer US Dollar

GBP/USD remains pressured toward 1.2650 on firmer US Dollar

GBP/USD is dropping toward 1.2650 in the European trading hours on Monday. The hawkish Fed expectations and a softer risk tone favor the US Dollar, exerting downward pressure on the pair. Fedspeak remains next in focus. 

GBP/USD News

Gold sellers regain control, eye a sustained move below $2,300

Gold sellers regain control, eye a sustained move below $2,300

Gold price is reversing a part of Friday’s upswing, having faced rejection once again above the $2,330 level early Monday. Gold price fails to benefit from a pause in the US Dollar upsurge, as the US Treasury bond yields recover after last week’s downward spiral.  

Gold News

Bitcoin retesting its major resistance level

Bitcoin retesting its major resistance level

Bitcoin price is retesting its weekly resistance level of $67,147. Ethereum price finds support around $3,321, the price imbalance between $3,146 and $3,498. Ripple price faces rejection due to the key resistance level of $0.499.

Read more

Weekend digest and a quiet start to the week

Weekend digest and a quiet start to the week

It will be a quiet start to the week on the data front. From Sweden, we get the Riksbank's Business Survey. Overnight, the RBA is widely expected to leave monetary policy unchanged. Markets price in the first rate cut only for May 2025. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures