• USD/INR is expected to stretch its valuations after overstepping the weekly high at around 79.80.
  • A one-time drop in US inflation won’t be sufficient to trim Fed's hawkish stance.
  • Oil prices have failed to recapture the $90.00 territory.

The USD/INR pair is displaying wild moves in the opening session after a holiday of Muharram as investors are paring their stretched positions. The asset has remained bullish in the entire month and is expected to extend gains after overstepping the weekly high at around 79.80.

In today’s session, investors’ entire focus will remain on the US Consumer Price Index (CPI). The plain-vanilla US inflation is expected to trim to 8.7% from the prior release of 9.1%. Well, the Federal Reserve (Fed) policymakers are doing the laborious job of containing price pressures by deploying policy tightening measures for the past six months. Signs of exhaustion are in front of us, thanks to the weaker oil prices in June.

However, the case is temporary as a promise of higher supply by the oil cartel won’t sustain due to the unavailability of additional production capacity. Also, a one-time slowdown signal is not sufficient to compel Fed chair Jerome Powell to sound less hawkish. In addition to that, higher job addition in the US labor force in July has refreshed signs of soaring price pressures in the US economy.

On the Indian rupee front, the return of Foreign Portfolio Investors (FPIs) on Dalal Street is likely to support the Indian rupee bulls. Meanwhile, oil prices have failed to sustain above the psychological resistance of $90.00. This may bring offers again to the table and the Indian economy, being a major oil consumer will be delighted with the declining oil prices.

USD/INR

Overview
Today last price 79.5251
Today Daily Change -0.0500
Today Daily Change % -0.06
Today daily open 79.5751
 
Trends
Daily SMA20 79.573
Daily SMA50 78.8624
Daily SMA100 77.7625
Daily SMA200 76.4093
 
Levels
Previous Daily High 79.8277
Previous Daily Low 79.4706
Previous Weekly High 79.793
Previous Weekly Low 78.4128
Previous Monthly High 80.208
Previous Monthly Low 78.8583
Daily Fibonacci 38.2% 79.607
Daily Fibonacci 61.8% 79.6913
Daily Pivot Point S1 79.4212
Daily Pivot Point S2 79.2674
Daily Pivot Point S3 79.0641
Daily Pivot Point R1 79.7783
Daily Pivot Point R2 79.9816
Daily Pivot Point R3 80.1354

 

 

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