USD/INR rises to near 83.50 due to the upward correction in the US Dollar


  • USD/INR gains ground as US Treasury yields recover on Thursday.
  • The US Dollar may struggle due to the growing expectations of multiple rate cuts by the Fed in 2024.
  • India's Trade Deficit increased to $19.1 billion in April due to lower exports and a rise in Gold imports.

The USD/INR pair edges higher to near 83.50 during the early European session on Thursday. The upward correction in the US Dollar (USD) helps the pair to retrace its recent losses registered in the last two days. However, the Greenback depreciated on Wednesday due to growing expectations of multiple rate cuts by the Federal Reserve (Fed) in 2024.

This dovish sentiment surrounding the Fed was bolstered after the release of the lower-than-expected monthly Consumer Price Index (CPI) and Retail Sales data from the United States (US). US CPI decelerated to 0.3% month-over-month in April and came in at a lower-than-expected 0.4% reading. While Retail Sales flattened, falling short of the expected increase of 0.4%.

The US Dollar Index (DXY), which gauges the performance of the US Dollar (USD) against six major currencies, hovers around 104.30. The improved US Treasury yields are providing support for the Greenback. The 2-year and 10-year yields on US Treasury bonds stand at 4.73% and 4.33, respectively, by the press time.

On Wednesday, India's Trade Deficit, released by the Ministry of Commerce and Industry, increased to $19.1 billion in April, from the previous reading of $15.6 billion. This increase could be attributed to lower exports and a surge in Gold imports, according to government data.

Reuters cited a foreign exchange trader at a private bank who suggested that the Indian National Rupee (INR) "should strengthen somewhat, but don't expect the movement to be very significant as the INR would continue to underperform amidst broad USD short positions buildup." Forward premiums on the USD/INR pair saw an uptick, with the one-year implied yield rising by 2 basis points to 1.70%, supported by lower US bond yields.

USD/INR

Overview
Today last price 83.4965
Today Daily Change 0.0804
Today Daily Change % 0.10
Today daily open 83.4161
 
Trends
Daily SMA20 83.437
Daily SMA50 83.2954
Daily SMA100 83.1691
Daily SMA200 83.1721
 
Levels
Previous Daily High 83.6006
Previous Daily Low 83.4061
Previous Weekly High 83.6168
Previous Weekly Low 83.36
Previous Monthly High 83.906
Previous Monthly Low 82.9225
Daily Fibonacci 38.2% 83.4804
Daily Fibonacci 61.8% 83.5263
Daily Pivot Point S1 83.348
Daily Pivot Point S2 83.2798
Daily Pivot Point S3 83.1535
Daily Pivot Point R1 83.5424
Daily Pivot Point R2 83.6687
Daily Pivot Point R3 83.7368

 

 

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