USD/INR Price News: Rupee bulls struggle above 74.00 despite Moody’s optimism for India GDP


  • USD/INR consolidates uptick to fresh two-month high, stays mildly bid for second consecutive day.
  • Moody’s rejects economic fears from India’s second covid wave, says losses will be limited.
  • US dollar rebound gains more accolades ahead of the key PMIs.

USD/INR eases to 74.24, following the run-up to refresh the two-month top, amid the initial Indian trading session on Wednesday. Even so, the Indian rupee (INR) pair stays positive for the second day in the row despite Moody’s upbeat analysis of the Indian economy.

The global rating giant initially said, “Economic shocks from the second covid wave in India will not be as severe as last year's,” before confirming that the economic impact of virus resurgence in India likely to be concentrated in the current quarter. Moody’s also added, “Faster vaccination progress in India will be paramount in restricting economic losses to the current quarter.”

The economic analysis also forecasts India’s real GDP to grow at 9.6% in 2021 and 7.0% in 2022 while saying, “Virus resurgence adds uncertainty to India's growth forecast for 2021.”

Elsewhere, markets returned to the US dollar buying as Fed Chairman Powell seemed to fail in convincing the bears expecting rate hike and tapering. Also on the same side could be comments from China warning the US warships in the Taiwan Strait.

Amid these plays, Asia-Pacific equities are mildly bid but the US Treasury yields trim the previous day’s losses by the press time.

Moving on, the preliminary readings of the US Markit PMIs for June will be the key as traders await more clues to confirm the recently dovish rhetoric from the Fed policymakers.

Technical analysis

Although a clear break of 50-day SMA, around 73.65, keeps USD/INR bulls hopeful, mid-April tops near 75.05 become a tough nut to crack for them.

Additional important levels

Overview
Today last price 74.2475
Today Daily Change 0.0610
Today Daily Change % 0.08%
Today daily open 74.1865
 
Trends
Daily SMA20 73.2237
Daily SMA50 73.6652
Daily SMA100 73.3489
Daily SMA200 73.4834
 
Levels
Previous Daily High 74.4
Previous Daily Low 74.0585
Previous Weekly High 74.4752
Previous Weekly Low 73.1046
Previous Monthly High 74.311
Previous Monthly Low 72.3386
Daily Fibonacci 38.2% 74.2695
Daily Fibonacci 61.8% 74.189
Daily Pivot Point S1 74.03
Daily Pivot Point S2 73.8735
Daily Pivot Point S3 73.6885
Daily Pivot Point R1 74.3715
Daily Pivot Point R2 74.5565
Daily Pivot Point R3 74.713

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD pressured amid downbeat data, covid concerns

EUR/USD is trading well below 1.18 and down on the day. Markit's US Services PMI missed estimates with 59.8, souring sentiment. Worries about covid provide some support to the safe-haven dollar. The ECB's dovish decision pressures the euro.

EUR/USD News

GBP/USD hovers around 1.3750 amid after mixed UK data

GBP/USD is holding above 1.3750, clinging to this level after UK Retail Sales beat estimates but Markit's PMIs missed on both sides of the pond. Covid headlines are eyed.

GBP/USD News

XAU/USD eyes a sustained move below key $1799 support

Gold price is trading on the wrong footing this Friday, eyeing the first weekly loss in five weeks, as the US dollar remains at the highest levels in three months.

Gold News

Cardano might pull back to $1.11 before heading higher

Cardano price pierced the July 18 swing high at $1.21, indicating a resurgence of buyers. Although ADA might try to slice through $1.25, a retracement will likely evolve before tagging $1.37.

Read more

US Markit PMIs Preview: Pre-weekend dollar boost? Downbeat figures could exacerbate risk-off mood

Two steps down, one step up – that has been the playbook for risk-averse markets. What happens when traders have little time to act ahead of the weekend and the last word belongs to a downbeat figure? 

Read more

Forex MAJORS

Cryptocurrencies

Signatures