USD/INR Price News: Indian rupee pares weekly gains around 74.50 on diverse catalysts
- USD/INR eases from intraday high but stays above 13-day low flashed on Thursday.
- RBI hesitates direct intervention, CE estimates Indian activity reaching pre-pandemic levels.
- Bullish candlestick helps buyers to regain previous support, back further upside.
USD/INR eases from intraday top to 74.48, printing 0.13% gains on a day, amid early Friday’s trading.
In doing so, the Indian rupee (INR) pair extends the previous day’s recovery moves, backed by bullish candlestick formation and covid fears, as well as mixed factors, at home.
India bucks the latest trend of higher covid-led deaths by marking a 483 figure versus the previous day’s 507. That said, the daily infections rose by 35,342, per the Health Ministry data per Reuters. The same helps Capital Economics (CE) to say that the Indian activities are back at pre-virus levels. This also joins the cautious optimism in the broader market scenario where the US policymakers stay hopeful of availing more stimulus and push for booster vaccines to tame the pandemic.
However, the Delta covid variant fears are bigger than the immediate easing in data and push the policymakers to keep easy money on the table, even if the RBI hesitates to go all over to safeguard the INR. The same warns governments to witness another lockdown if they’re failed over jabbing and enjoy the unlocks.
It should be noted that the pre-PMI caution and hawkish expectations from next week’s Fed meeting propel the USD/INR prices.
Read: US Markit PMIs Preview: Pre-weekend dollar boost? Downbeat figures could exacerbate risk-off mood
Technical analysis
USD/INR reverses the early-week drop to a multi-day low, re-gaining the support line broke the previous day.
Sturdy Momentum line, dragonfly Doji on the daily (D1) formation direct buyers towards the 75.00 threshold, before highlighting the yearly top surrounding 75.65.
Though, 74.90 can offer an intermediate halt, also test the USD/INR bulls.
Meanwhile, the recent bottom around 74.30 and the late June’s low close to the 74.00 round figure could restrict the short-term USD/INR downside.
Following that, the pair’s slump to the early June’s top near 73.30 can’t be ruled out.
USD/INR: Daily chart
Trend: Bullish