USD/INR prints multi-month tops near 74.50

USD/INR climbed to the 74.50 region in early trade.
The rupee drops to the lowest level since October 2018.
The RBI seized control over the Yes Bank on Friday.

Pablo Piovano FXStreet

The Indian rupee is in free-fall at the end of the week and it has lifted USD/INR to the highest level since October 2018 near the 74.50 area.

USD/INR higher on INR-selling, coronavirus

The Indian currency has been under increasing selling pressure since late February along with mounting concerns over the fast-spreading coronavirus and its potential impact on the domestic (as well as global) economy.

In addition, Friday’s news that the central bank (RBI) seized control over the Yes Bank - the country’s fourth largest private lender - has been also weighing on the rupee and exacerbated the upside in the pair to fresh tops near 74.50 earlier in the session.

Later on Friday, the US Non-farm Payrolls for the month of February are due, with market expectations at around 175K jobs. In the domestic docket, the RBI’s FX Reserves ticked higher to $481.54 billion during last week (from 4476.12 billion).

USD/INR levels to watch

At the moment, the pair is advancing 0.14% at 74.138 and faces the next hurdle at 74.466 (2020 high Mar.6) seconded by 74.528 (all-time high October 9 2018) and then 75.00 (psychological level). On the flip side, a breach of 72.203 (high Jan.8) would expose 71.550 (55-day SMA) and finally 70.788 (200-day SMA).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD edges higher above 0.7050 as hot CPI lifts RBA rate hike odds

The AUD/USD pair gathers strength to near 0.7055 during the Asian trading hours on Thursday. The Australian Dollar edges higher against the US Dollar as hotter inflation data bolsters expectations of Reserve Bank of Australia rate hikes. The US September Personal Consumption Expenditures inflation report will be in the spotlight later on Thursday.

USD/JPY retakes 158.00 as USD stalls the post-FOMC corrective slide

USD/JPY attracts some dip-buyers during the Asian session on Thursday, climbing back above 158.00 as the US Dollar reverses part of the post-FOMC pullback from a two-week high. Bulls, however, await key US macro data – the Advance Q3 GDP and the PCE Price Index – before positioning for further gains. Focus will then shift to the crucial BoJ policy update on Friday amid firming expectations for a December rate hike.

Gold corrects after three-day winning streak ahead of key US data

Gold is down 0.65% to near $4,040 after failing to extend its three-day winning streak on Thursday. The precious metal comes under pressure as the US Dollar regains ground after a corrective move on Wednesday, following the Federal Reserve’s monetary policy announcement.

XRP and XLM lose ground as hawkish Fed tone weighs

Ripple (XRP) and Stellar (XLM) remain under pressure on Thursday as bearish derivatives positioning and on-chain signals weigh on sentiment. XRP slides toward key support at $1.30, while XLM gives back some of its recent gains. Meanwhile, the Federal Reserve (Fed) held interest rates unchanged at 3.75%-4.00% at its two-day October policy meeting.

Fed's recap: A cautious hold with a clear warning on inflation

The Federal Reserve (Fed) held its policy rate steady at 3.75%-4.00%, but it wasn’t a unanimous decision. Among two officials who wanted a 25-basis-point hike were Lisa Cook and Beth Hammack, while Chair Kevin Warsh said the Fed would use the coming flow of information to decide whether further action is needed. The statement presented a resilient economy.

Anthropic pledged $270 billion to Amazon, Google, and Microsoft. Here's who actually gets paid

Anthropic owes Amazon, Google, and Microsoft at least $269.4 billion for computing power, even if it uses less. All three sell its models and handle its billing, and Amazon and Google own stakes and lend it money, so they get paid regardless of how the IPO goes. The Dario Amodei-led Anthropic filed its initial public offering (IPO) on Monday, seeking a listing on the Nasdaq under the ticker ANT.