USD/INR pulls back from nine-day high as news from S&P dims risk-off, RBI in focus


  • USD/INR fails to stay strong as S&P holds India’s credit outlook unchanged.
  • Fears of US-China trade war seems to have been ignored for now.
  • Indian equities buck the prevailing trend at Asian frontier.

USD/INR drops to the intra-day low of 71.71 during the initial trading session of the Indian markets on Wednesday. The pair earlier surged to the nine-day high amid increasing global trade pessimism. Though, news from S&P offered a sigh of relief to the Indian traders.

As per the tweet from India’s Economic Affairs Secretary Atanu Chakraborty, the global rating agency S&P reaffirmed the sovereign rating of India at BBB- with a stable outlook. The news received a good response from Indian rupee (INR) Bulls as another rating giant, Moody’s, cut the Asian nation’s credit rating outlook to negative during last month.

While the news helps Indian equity benchmarks to deviate from other Asian counterparts, the rise of stocks seems to be capped by the fears of a trade war between the United States (US) and China. US President Donald Trump recently dimmed chances of a phase-one deal during this year while also indicating further hardships for the European, Japanese and East American exporters.

Traders will keep eyes on the Reserve Bank of India’s (RBI) monetary policy meeting, up for Thursday, for immediate direction ahead of Friday’s US employment data.

While the RBI is expected to announce another rate cut despite axing benchmark rates by almost 135 basis points (bps) during the present year. The Indian central bank could also show worries concerning the Gross Domestic Product (GDP) after the data recently dropped to a multi-year low. Further, the US employment figures could keep portraying the strength of the labor market and might support the US dollar (USD).

Technical Analysis

61.8% Fibonacci retracement of November month upside, near 71.20, restricts the pair’s near-term declines while November month top near 72.40 caps the quote’s short-term rise.

additional important levels

Overview
Today last price 71.72
Today Daily Change -0.0660
Today Daily Change % -0.09%
Today daily open 71.786
 
Trends
Daily SMA20 71.6394
Daily SMA50 71.2426
Daily SMA100 71.0251
Daily SMA200 70.2405
 
Levels
Previous Daily High 71.826
Previous Daily Low 71.5275
Previous Weekly High 71.8815
Previous Weekly Low 71.2255
Previous Monthly High 72.37
Previous Monthly Low 70.4975
Daily Fibonacci 38.2% 71.712
Daily Fibonacci 61.8% 71.6415
Daily Pivot Point S1 71.6003
Daily Pivot Point S2 71.4147
Daily Pivot Point S3 71.3018
Daily Pivot Point R1 71.8988
Daily Pivot Point R2 72.0117
Daily Pivot Point R3 72.1973

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

GBP/USD off 7-month highs, still firmer as Tories hold the lead

GBP/USD retraces from the new seven-month highs of 1.3180 but remains strongly bid, as weekend polls have reaffirmed a solid lead for PM Johnson's Conservatives. Cable dropped on Friday amid upbeat US data.

GBP/USD News

EUR/USD steadying above 1.1050 amid upbeat German export data

EUR/USD is trading above 1.1050, attempting a recovery after Germany reported an increase in exports in October. EUR/UDS dropped sharply on Friday amid upbeat US Non-Farm Payrolls and weak German industrial output. 

EUR/USD News

Forex Today: US-Sino trade tensions prevail, Boris closer to victory, EUR/USD licking its wounds

Trade talks: President Donald Trump has called on the World Bank to stop lending to China, a move that may aggravate tensions, with only six days to go until Washington is set to slap new tariffs on Beijing. Negotiations continue.

Read more

Gold clings to modest gains above $1460 level, lacks follow-through

The latest NFP report surpassed most optimistic estimates, which provided a goodish intraday lift to the US dollar and eventually prompted some aggressive selling around the dollar-denominated commodity.

Gold News

USD/JPY in search of a firm direction, stuck in a range above mid-108.00s

USD/JPY was seen oscillating in a narrow band and consolidated last week’s losses. US-China trade uncertainties continued underpinning the JPY’s safe-haven status. Investors now seemed reluctant ahead of the latest FOMC monetary policy update.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures