USD/INR Price News: Indian rupee consolidates biggest jump since May above 74.50
- USD/INR reverses the previous day’s losses, refresh intraday high.
- ADB cuts India’s FY22 GDP forecast, Indian parliament jostles over 1.87 lack crore stimulus.
- Indian markets are closed, virus updates, US infrastructure voting in focus.
USD/INR prints mild gains around 74.60 even Indian markets are off on Wednesday. In doing so, the Indian rupee (INR) justifies the covid woes at home and abroad while also adhering to the US dollar strength.
That said, the US Dollar Index (DXY) prints a five-day uptrend around April tops, up 0.06% intraday around 93.02 by the press time, as Delta covid variant weighs on market sentiment. Also putting a safe-haven bid under the greenback could be the Sino-American tussles. Additionally, hopes of further stimulus from US President Joe Biden also back the US Dollar bulls.
While slower jabbing has already put Australia at economic risk, India is also struggling as far as vaccinations are concerned. On Tuesday, an Indian Government official said, “one-in-three vulnerable to getting infected to covid-19.”
Also negative for the INR is the deadlock over 1.87 lakh crore stimulus in the Indian parliament as a routine drama in the house stopped negotiations ahead of today’s holiday.
As a result, the Asian Development Bank (ADB) cuts the Asian nation’s FY 2022 GDP forecast to 10% versus 11% expected earlier.
Elsewhere, comments from US Deputy Secretary of State Wendy Sherman also amplifies the risk-off mood and back the USD as the diplomat raises concerns over North Korea and China during the trilateral meet in Tokyo.
Amid these plays, US 10-year Treasury yields fade bounce off February lows whereas stocks in Asia-Pacific attempts a recovery.
Although the Indian holiday may restrict the USD/INR moves, the broad US dollar strength could keep the pair buyers hopeful. It’s worth noting that the US Senate’s procedural voting on the infrastructure spending bill will be the key while covid updates and Sino-American tension, not to forget the Indian political news, can act as extra catalysts.
Technical analysis
Unless offering a daily close below 74.50-45 area, comprising 21-day SMA and monthly support line, USD/INR sellers remain incapable of taking the controls.