- USD/INR extends the previous day’s recovery moves to refresh intraday top.
- Covid resurgence gains momentum in India, government rejects vaccine shortage claims.
- Risk-off mood favors US dollar strength ahead of Fed’s Powell, US Durable Goods Orders.
USD/INR stays on the bid for the second consecutive day, currently up 0.10% around 72.71, amid the initial Indian session on Wednesday. In doing so, the cross-currency pair not only portrays the US dollar’s strength on the safe-haven buying but also highlights India’s coronavirus (COVID-19) woes.
As per Wednesday’s covid figures, published via Reuters, “India reported 275 new COVID-19 deaths on Wednesday, the most this year, as a second surge in cases fills up hospital beds in big states such as Maharashtra.”
It’s worth mentioning that the virus infections also jump the most since November while adding 47,262 new cases. With this, India becomes the world’s third most covid infected country following the US and Brazil, per Reuters.
While the Indian government is under attack over the latest virus resurgence, the ruling party rather cheers the ample supply of vaccines and stays hopeful to tame the deadly virus soon.
On the other hand, US President Joe Biden also conveyed vaccine optimism but confusion over the future of the fiscal and monetary stimulus, coupled with doubts over economic recovery, weigh on the sentiment. Furthermore, the Sino-American tussles and vaccine rejection in Europe, Hong Kong and Macau, not to forget the extension of virus-led lockdowns in Germany and the Netherlands, also add to the risk-off mood.
Against this backdrop, the US dollar index probes the yearly top while the US 10-year Treasury yield declines to over a week’s low while breaking 1.60% to the south.
Read: Asian Stock Market: Stays pressured as vaccine concerns join China news to sour sentiment
Moving on, India’s trade and current account figures, coupled with the Balance of Payments, can offer immediate direction ahead of the US Durable Goods Order and Fed Chair Jerome Powell’s second appearance during the Congressional testimony.
Technical analysis
A confluence of 21-day and 50-day SMA around 72.82-85 probes the USD/INR pair’s immediate upside.
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
Editors’ Picks
EUR/USD clings to gains near 1.0700, eyes on key US data
EUR/USD clings to gains near the 1.0700 level in early Europe on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price lacks firm intraday direction, holds steady above $2,300 ahead of US data
Gold price remains confined in a narrow band for the second straight day on Thursday. Reduced Fed rate cut bets and a positive risk tone cap the upside for the commodity. Traders now await key US macro data before positioning for the near-term trajectory.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.