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.

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