USD/INR Price News: Indian Rupee slides to 82.20 with eys on RBI Interest Rate Decision, US NFP
- USD/INR picks up bids to reverse Monday’s pullback from one-week high.
- Firmer Oil price, US Dollar’s consolidation weighs on Rupee amid India holiday.
- US Factory Orders may entertain intraday traders ahead of Wednesday’s RBI Interest Rate decision.
- Friday’s US NFP appears crucial amid receding hawkish Fed bets.
USD/INR regains upside momentum as bulls prod 82.22 level during early Tuesday, after a downbeat start of the week. In doing so, the Indian Rupee (INR) pair justifies the US Dollar’s corrective bounce amid the Indian holiday and a sluggish trading session of the day.
That said, the US Dollar Index (DXY) prints mild gains around 102.20 after falling the most since March 22 the previous day. With this, the greenback’s gauge versus the six major currencies rebound from the one-week low amid inactive markets.
The mixed concerns surrounding OPEC+ led shock to inflation and the Federal Reserve’s (Fed) next moves seem to have allowed the US Treasury yields and the US Dollar to pare recent losses.
On the same line could be the firmer Oil price, which in turn weighs on the INR due to India’s heavy reliance on energy imports and higher Current Account Deficit (CAD). That said, WTI crude oil rose nearly 7.0% to $81.00 the previous day, up 0.85% intraday to $80.85 by the press time.
It’s worth observing that the Indian Rupee’s latest weakness could be linked to the cautious mood ahead of the RBI.
While portraying the mood, the S&P 500 Futures struggle for clear directions after Wall Street closed mixed whereas the US 10-year and two-year Treasury bond yields remain inactive around 3.42% and 3.98%.
Looking forward, the holiday in India joins a light calendar elsewhere, apart from the US Factory Orders for February, which can allow the USD/INR pair to consolidate recent losses. However, the buyers should remain mindful of the likely hawkish plays of the Reserve Bank of India (RBI), scheduled for Wednesday, as well as the latest downbeat concerns surrounding the Fed.
It should be noted that Wednesday’s US ISM Services PMI, ADP Employment Change and Friday’s Nonfarm Payrolls (NFP), can act as additional catalysts to watch for clear directions, even if the pair traders remain confused after the RBI announcements.
Technical analysis
Despite repeated bounces off a 10-week-old ascending support line, around 82.10 by the press time, the bearish MACD signals and steady RSI (14) challenges USD/INR bulls unless the quote manages to cross descending resistance line from mid-March, near 82.50 at the latest.