USD/INR Price News: Indian rupee cheers DXY weakness to regain 82.60 despite bearish bets
- USD/INR takes offers to reverse the week-start gains.
- Softer oil prices, hopes of festive demand underpin INR amid sluggish session.
- DXY traces downbeat yields, absence of Fedspeak strengthens the greenback’s weakness.
- Calls of witnessing 85.00 as a quote gain market’s attention and challenge the bears.
USD/INR remains pressured around the intraday low of 82.55, reversing Monday’s gains, as it struggles to justify the risk-aversion in Asia amid a softer US dollar and sluggish markets during early Tuesday.
Indian markets resume after a Diwali holiday and benefit from the softer oil prices. That said, the WTI crude oil prices remain lackluster around $84.50, sidelined for the second consecutive week after reversing from a two-month high. India’s heavy reliance on energy imports makes the INR vulnerable to oil price moves.
Elsewhere, the ongoing annual New Year festivities also allow the Indian rupee (INR) traders to remain optimistic amid hopes of more demand.
In doing so, the INR also cheers the softer US dollar amid an inactive day. That said, the US Dollar Index (DXY) remains on the back foot around 111.85, taking rounds to intraday low while struggling to extend the week-start gains amid the mixed clues in the market and the downbeat US data, as well as an absence of Fedspeak.
It should be noted that the US 10-year Treasury yields remain pressured around 4.21%, down two basis points (bps) while the US stock futures remain mildly offered. Also, stocks in the Asia-Pacific region are mostly negative led by China.
Moving on, a light calendar may restrict immediate USD/INR moves and allow the pair to consolidate the previous losses. However, bearish calls from the prominent Indian forecaster seem to keep the pair buyers hopeful. That said, the IDFC first bank, which previously anticipated an 82.50 level by March, upwardly revise its outlook to say, “USD/INR to reach 85 by March on a combination of a decline in FX reserves cover and hawkish Fed,” reported Reuters.
Technical analysis
Unless breaking a one-month-old support line, around 82.35 by the press time, USD/INR remains on the front foot and suggests a fresh all-time high, currently around 83.42.