- USD/INR struggles to snap three-day downtrend, picks up bids of late.
- RBI begins two-day monetary policy meeting, Indian covid numbers follow Asia-Pacific counterparts.
- Virus woes, Fed tapering concerns entertain buyers ahead of the key risk events on Friday.
USD/INR rises to 74.23, up 0.05% intraday, amid the early Thursday’s trading. The Indian rupee (INR) pair dropped to the lowest since June 22 during its three-day downtrend before the recent corrective pullback.
The US dollar’s safe-haven demand and the Fed’s tapering chatters, not to forget the pre-data/events anxiety, are the key catalysts to challenge the USD/INR bears.
The US Dollar Index (DXY) remains firmer, backed by upbeat Treasury yields, around 92.30 by the press time after San Francisco Federal Reserve Bank President Mary Daly followed Fed Vice Chair Richard Clarida and US Treasury Secretary Janet Yellen to renew the tapering chatters. Also underpinning the greenback’s safe-haven demand could be the covid woes amid multi-day high infections from India, Australia, China and the US.
As per the latest covid numbers from the Indian Health Ministry, daily infections jumped the most since early May, with 42,982 daily cases, whereas the death toll also rose by 533.
It should be noted that the mixed US ADP Employment Change and ISM Services PMI data, contrast to hawkish comments from Dallas Fed President Robert Kaplan and St. Louis Fed President James Bullard also favor the USD/INR buyers.
Even so, Friday’s US jobs report and the Reserve Bank of India’s (RBI) monetary policy meeting will be the key to follow for fresh impulse. While the early signal for US employment figures has already teased the pair bears, RBI is likely to portray a dovish tilt and may challenge the USD/INR weakness if matched. However, it all depends upon the actual outcome and risk catalysts that shouldn’t be ignored.
Technical analysis
Although a three-week-old descending trend line restricts the USD/INR pair’s immediate downside around 74.10, 10-DMA level of 74.33 and a downward slopping resistance line from July 20, forming part of falling wedge bullish chart pattern near 74.42, challenge the bulls.
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD climbs to 10-day highs above 1.0700
EUR/USD gained traction and rose to its highest level in over a week above 1.0700 in the American session on Tuesday. The renewed US Dollar weakness following the disappointing PMI data helps the pair stretch higher.
GBP/USD extends recovery beyond 1.2400 on broad USD weakness
GBP/USD gathered bullish momentum and extended its daily rebound toward 1.2450 in the second half of the day. The US Dollar came under heavy selling pressure after weaker-than-forecast PMI data and fueled the pair's rally.
Gold rebounds to $2,320 as US yields turn south
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
Germany’s economic come back
Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.