USD/INR Price News: Indian rupee revisits sub-73.00 zone amid market consolidation

• USD/INR pares gains inside a range around 73.00, refreshes intraday low of late.
• Improving covid conditions, broad US dollar pullback helps INR.
• China data, cautious mood ahead of key events probe the pair bears.

USD/INR stands on slippery ground while refreshing intraday low to 72.88, down 0.12% on a day, amid the initial hours of Wednesday’s Indian trading session. The Indian rupee (INR) pair jumped to the weekly top the previous day before repeating the pullback moves from 21-day SMA.

Consolidation from the technical hurdle takes clues from the US dollar’s latest weakness, amid a halt in the US Treasury yields’ south-run.

Also behind the moves could be India’s recently easing covid infections and death toll. “India on Wednesday reported 92,596 new COVID-19 infections over the past 24 hours and 2,219 deaths from the coronavirus,” said Reuters.

It’s worth noting that the market’s indecision ahead of Thursday’s key US inflation data, coupled with the looming risk of the Fed’s tapering, pressures the US dollar. Additionally, uncertainty over US President Joe Biden’s infrastructure spending and a bill to escalate the Sino-American tussles also weigh on the greenback.

On the contrary, China’s mixed inflation numbers and readiness to tame foreign trade seemed to have a little reaction.

Amid these plays, India’s BSE Sensex prints mild gains even as US stock futures and bonds remain tepid by the press time.

Moving on, USD/INR traders will keep eyes on the US dollar’s reaction to the reserved moves before tomorrow’s key data/events. However, the RBI’s inaction and recent positive fundamentals from India could exert downside pressure on the currency pair.

Technical analysis

Repeated failures to cross 21-day SMA, around 73.00, need a clear downside break of 72.75 to target May’s low near 72.30.